empty
24.11.2021 11:36 AM
JPMorgan named the 'World's Most Important Bank' for the health of the financial system

This image is no longer relevant

According to the latest annual ranking of leading lenders compiled by global regulators, JPMorgan Chase (JPM.N) was once again named the world's most important bank for the health of the financial system as a whole.

On Tuesday, the Financial Stability Board (FSB), consisting of the regulators of the G20 countries, published the latest table of the 30 most systemic banks in the world.

The 30 lenders were divided into four baskets in order of their consistency, internationality, interconnectedness, and complexity, with JPMorgan now in the first place compared to its peers.

Last year, the bank shared its first place with HSBC and Citigroup.

BNP Paribas (BNPP.PA) and Goldman Sachs (GS.N) were also declared more systemic, both rose by one basket.

It is worth noting that being included in the table means having additional capital and undergoing stricter supervision to avoid a repeat of taxpayer assistance during the banking crisis that was more than a decade ago. In practice, lenders usually have capital reserves that already exceed FSB requirements.

According to the bank's statement, JPMorgan had a fixed capital to risk-weighted assets ratio of 12.9% at the end of September. This is well above the minimum level of 11.3% set by the Fed.

This image is no longer relevant

The FSB's capital allowance for JPMorgan is now 2.5% compared to 2% last year.

US banks are aggressively, but unsuccessfully, struggling with capital allowances for the FSB, but they are unlikely to succeed under the administration of US President Joe Biden.

However, the FSB gave hope for relief to the eurozone banks by showing an example of how their relations with other countries of the bloc are developing.

Eurozone creditors argue that they are all regulated by the European Central Bank within the framework of the EU banking union, and so, their relations with other countries should not be considered as cross-border, which requires a tougher attitude.

On Tuesday, the FSB announced that the Basel Committee, which develops global banking capital rules, will conduct a short-term review of international risks within the banking union regarding its list of the most systemic creditors.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Irina Yanina
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

AUD/JPY. Analysis and Forecast

Today, Tuesday, during the European session, the AUD/JPY pair reached the round level of 97.00. The yen continues to show relative weakness amid growing expectations that the Bank of Japan

Irina Yanina 12:44 2025-07-15 UTC+2

EUR/USD. Analysis and Forecast

On Tuesday, the EUR/USD pair is gaining positive momentum, recovering from more than two weeks of declines triggered by Trump's threat to impose new tariffs. On Saturday, Trump announced plans

Irina Yanina 12:30 2025-07-15 UTC+2

The European Union Finalizes Second List of Countermeasures

The European Union has finalized its second list of countermeasures against U.S. goods, totaling 72 billion euros. This step comes in response to the ongoing trade tensions between

Jakub Novak 11:25 2025-07-15 UTC+2

Trump's Actions Alarm Germany

While the euro remains relatively stable, German Chancellor Friedrich Merz is not feeling as confident. In a recent interview, he stated that U.S. President Donald Trump's threat to impose 30%

Jakub Novak 11:11 2025-07-15 UTC+2

Rising Inflation in the U.S. Will Decrease the Likelihood of Fed Rate Cuts (Possible Resumption of USD/CAD and Bitcoin Growth)

While President Donald Trump continues playing his favorite game called "Make America Great Again," market participants are calculating the cost of U.S. trade wars with nearly the entire world

Pati Gani 09:58 2025-07-15 UTC+2

The Market Will Break Out of Its Cage

Deep down, markets still believe tariffs could become an inflationary force. However, without confirmation from official data, investors are not ready to sell the S&P 500. They've grown accustomed

Marek Petkovich 09:14 2025-07-15 UTC+2

What to Pay Attention to on July 15? A Breakdown of Fundamental Events for Beginners

Several macroeconomic reports are scheduled for Tuesday. The key report of the day is, of course, the U.S. Consumer Price Index (CPI). Why is it important? At the moment, inflation

Paolo Greco 07:27 2025-07-15 UTC+2

GBP/USD Overview – July 15: U.S. Budget Turns Surplus — What's Next?

The GBP/USD currency pair continued to trade lower on Monday, despite the lack of any strong fundamental reasons for such a move. Of course, one can always find or even

Paolo Greco 03:58 2025-07-15 UTC+2

EUR/USD Overview – July 15: No Agreement Signed with the EU. Mexico Gets Caught in the Crossfire

The EUR/USD currency pair traded very calmly throughout Monday, as the market continued to ignore Trump's tariff hikes. If the euro remains flat while the British pound is actively falling

Paolo Greco 03:58 2025-07-15 UTC+2

The Budget Is Now in Surplus, but the National Debt Isn't Falling

Last Friday, the U.S. Treasury Department announced the first budget surplus since 2017. Many in the market may have interpreted this as great news for the dollar

Chin Zhao 00:48 2025-07-15 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.