UBS and Credit Agricole can hold less capital

UBS and Credit Agricole have been deemed by regulators as less important to the global financial system than a year ago and will not have to hold as much extra capital as previously forecast.

Reuters reports that in contrast, Agricultural Bank of China has been added to the list of world's 'systemically important' banks and will need to hold extra capital from 2016.

Policymakers have said the world's biggest banks have to hold more capital than smaller rivals because of their importance to the global financial system. The extra capital serves as another layer of protection on top of minimum capital levels for all banks.

The Financial Stability Board on Thursday issued a list of 30 banks considered the most systemically important globally, dubbed G-SIBs. They must hold extra capital of between 1 and 2.5 percent to make them less likely to fail in a crisis and cause havoc in financial markets.

Hit the link below to access the complete Reuters article:

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