Nov 21, 2017
Too big to fail: RBC joins ranks of world’s systemically important banks
Royal Bank of Canada (RY.TO) has joined the ranks of global banks deemed too big to fail.
The Basel, Switzerland-based Financial Stability Board added RBC to its list of global systemically important banks on Tuesday.
As a result, RBC will be required to hold a one per cent additional capital buffer.
"This designation reflects the size and scale of RBC's global operations," the bank said in a press release, while adding it already meets the additional capital requirement.
A total of 30 banks are on the list, with RBC being the only addition since 2016.
The Toronto-based lender faces the same capital requirement as other major institutions including Morgan Stanley, UBS, and Royal Bank of Scotland.
JP Morgan Chase, meanwhile, has the highest additional capital buffer at 2.5 per cent.
G-SIBs as of November 2017 allocated to buckets corresponding to required levels of additional capital buffers
| Bucket | G-SIBs in alphabetical order within each bucket |
|---|---|
|
5 (3.5%) |
(Empty) |
|
4 (2.5%) |
JP Morgan Chase |
|
3 (2.0%) |
Bank of America Citigroup Deutsche Bank HSBC |
|
2 (1.5%) |
Bank of China Barclays BNP Paribas China Construction Bank Goldman Sachs Industrial and Commercial Bank of China Limited Mitsubishi UFJ FG Wells Fargo |
|
1 (1.0%) |
Agricultural Bank of China Bank of New York Mellon Credit Suisse Groupe Crédit Agricole ING Bank Mizuho FG Morgan Stanley Nordea Royal Bank of Canada Royal Bank of Scotland Santander Société Générale Standard Chartered State Street Sumitomo Mitsui FG UBS Unicredit Group |
Table from: Financial Stability Board
