NEW YORK ( TheStreet) -- The Financial Stability Board on Friday released a list of 29 banks, including eight U.S. banks, that it deemed too big to be allowed to fail.
The banks, officially dubbed as Global Systemically Important Financial Institutions- or G-SIFIs, face additional capital requirements over and above those stipulated under the most recent international capital rules under Basel 3.
Depending upon their size, complexity, global interconnectedness and other factors, banks will have to add upto 3.5 percentage points to their core Tier 1 Capital ratio than banks that do not pose risks to the financial system. The regulators are yet to determine which the actual surcharge buckets at the individual bank level.The additional capital requirements will be phased in, starting in January 2016 for banks identified as SIFIs in November 2014 and will be in full implementation by January 2019. The list includes 17 other European banks, 3 Japanese banks and one Chinese bank. The list is preliminary will be updated every year in November. The future list may also include non-bank SIFIs. Banks have objected to the global surcharge, saying it will hinder their ability to make loans and boost the economy. JPMOrgan Chase CEO Jamie Dimon has gone so far as to call the rules anti-American. --Written by Shanthi Bharatwaj in New York
>To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV