Standard Chartered and BBVA have joined the global banks that will be required to hold extra capital because of their importance to the world financial system, the Financial Stability Board announced on Thursday.
Lloyds Banking Group, Commerzbank and Dexia, have dropped off the list of 28 “global systemically important financial institutions”. Dexia is being restructured and Lloyds and Commerzbank are shrinking.
Banks on the list will be required to hold additional capital equal to between 1 per cent and 2.5 per cent of their assets, adjusted for risk, on top of the Basel III minimums, for a total ratio of 8 per cent to 9.5 per cent, starting in 2016.
Read Brooke Masters’ full FT article here