The Financial Stability Board Lists Thirty Systemic Risk Institutions

A list of thirty global financial institutions has been compiled by regulators under the guidance of the Financial Stability Board [FSB], an international body of regulators and central bankers,  for cross-border supervision exercises, the Financial Times reported on Monday.

The list, which includes six insurance companies and 24 banks from the UK, continental Europe, North America and Japan, is part of an effort to pre-empt the spread of systemic risks  around the world in the event of a future financial crisis.

According to FT, the groups on the list will be asked to start drawing up so-called ‘living wills’ – also known as “recovery and resolution” plans –  that outline specific strategies how each bank could be wound up in the aftermath of a crisis.

While regulators prefer to see recovery and resolution plans prepared for all systemically important financial groups, the concept has split the banking world, with the more complex groups arguing that such plans will be almost impossible to draft without knowing the cause of any future crisis.

The exercise follows the establishment of the FSB in the summer of 2009, which was specifically designed to address the dangers of systemically important cross-border financial institutions through better supervision and co-ordination.

Here is the list in full, as cited by the FT:

Banks

United States:

  • Bank of America Merrill Lynch (BAC)
  • Citigroup (C)
  • Goldman Sachs (GS)
  • JPMorgan Chase (JPM)
  • Morgan Stanley (MS)

Canada

  • Royal Bank of Canada

UK groups

  • Barclays (BCS)
  • HSBC
  • Royal Bank of Scotland
  • Standard Chartered

Switzerland

  • Credit Suisse (CS)
  • UBS AG (UBS)

France

  • BNP Paribas
  • Société Générale

Spain

  • BBVA
  • Santander

Japan

  • Mitsubishi UFJ (MTU)
  • Mizuho (MFG)
  • Nomura (NMR)
  • Sumitomo Mitsui

Italy

  • Banca Intesa
  • UniCredit

Germany

  • Deutsche Bank (DB)

Netherlands

  • ING Group (ING)

Insurance groups

  • Aegon
  • Allianz
  • Aviva
  • Axa
  • Swiss Re
  • Zurich

Be the first to comment

Leave a Reply

Your email address will not be published.


*

This site uses Akismet to reduce spam. Learn how your comment data is processed.