JP Morgan declared most systemically important bank in the world

The Financial Stability Board (FSB) released an annual list of banks that play the most important role in the smooth functioning of the global financial market. It is noted that the composition of the list has not changed compared to last year.

It includes the same 30 banks as last year, including Bank of America, Citigroup, HSBC, Bank of China, BNP Paribas, Deutsche Bank.

As in 2021, JP Morgan was declared the most systemically important bank in the world. A key factor in this was that it had the most stringent capital requirements.

Created by the G20 Summit after the global financial crisis, the FSB has since 2011 annually published a list of banks of systemic importance to the global financial system.

Among the parameters by which the FSB evaluates banks are:

Demand for capital;
Total Loss-Absorbing Capacity (TLAC);
Ability to repay debt, etc.