HSBC and JPMorgan top list of firms that must hold extra capital

HSBC building at night

JPMorgan and HSBC topped the list of the world's top 29 banks that must hold extra capital from 2016 because of their size and reach, the Financial Stability Board (FSB) said on Monday.

Reuters reports that the FSB is the regulatory taskforce for the 20 biggest economies, whose leaders agreed in 2011 on extra capital requirements to keep top lenders stable in rocky markets.

The aim is to shield taxpayers from having to bail out banks as they did in the 2007-2009 financial crisis.

The extra capital requirements range from 1 to 3.5% spread over five "buckets", with full compliance by 2019. They come on top of the 7% minimum capital holdings all banks across the world must have by 2019.

The FSB was publishing an annual update of its list of globally systemic banks with still no bank occupying the top 'bucket' with a 3.5% extra capital buffer requirement.

To access the complete Reuters article hit the link below:

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