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Global regulators ease capital burden on JP Morgan bank

November 11, 2020 5:26 AM

LONDON (Reuters) - JPMorgan (NYSE: JPM) is no longer the world's most systemically-important bank, according to rankings for additional capital requirements published by the Financial Stability Board on Wednesday.

After banks had to be rescued by taxpayers in the financial crisis over a decade ago, regulators have ranked the world's most important banks in a series of capital "buckets" according to their size, international reach and complexity.

JP Morgan had been alone in having to hold extra capital equivalent to 2.5% of its assets on a risk-weighted basis out of the 30 top banks listed by the FSB, which coordinates financial rules for the Group of 20 Economies (G20).

JPMorgan has joined Citigroup (NYSE: C) and HSBC in the next "bucket" down that requires 2% in extra capital, the FSB said in the annual review of its list on Wednesday.

Goldman Sachs (NYSE: GS) and Wells Fargo have dropped from 1.5% to the lowest bucket at 1% applied to 19 of the 30 lenders.

China Construction Bank rises from 1% to 1.5%.

The new capital rankings come into effect in January 2022. Most lenders already hold capital buffers that are well above all of their regulatory requirements.

(Reporting by Huw Jones, editing by Nick Tattersall)

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