The Royal Bank of Canada (RBC) and Toronto-Dominion Bank remain the only Canadian banks on the Financial Stability Board’s (FSB) annual list of global systemically important banks (G-SIBs).
On Tuesday, the FSB published its 2024 list of G-SIBs, which includes 29 of the world’s biggest banks.
The annual exercise was developed in the aftermath of the global financial crisis to identify banks that are considered too big and/or too interconnected to fail.
Banks that are deemed to be systemically important are subject to an array of tighter rules and regulatory oversight, including added capital buffers and total loss-absorbing requirements, along with higher supervisory expectations and resolvability demands.
The banks on the list are also allocated into one of five buckets based on their systemic significance, with tougher requirements that are geared to each bucket.
There is still no bank in the top bucket. JPMorgan Chase & Co. is the only firm in the second-highest bucket, and HSBC and Citigroup are now the only banks in the third-highest bucket, as Bank of America has been dropped down to the fourth bucket.
The only other bank to move up or down the list was France’s Groupe Crédit Agricole, which was moved to a higher bucket, and faces a higher capital requirement.
RBC and TD are the only Canadian banks on the list, and both remain in the lowest bucket.