RBS drops to bottom rung in Global Systemic Bank list

RBS building

Royal Bank of Scotland will face a reduced capital surcharge after dropping to the bottom rung of the Financial Stability Board’s 2015 list of too-big-to-fail lenders.

China Construction Bank joined the global ranking, while Banco Bilbao Vizcaya Argentaria SA was removed.

Bloomberg News reports that the FSB, led by Bank of England Governor Mark Carney, assigned RBS a 1% surcharge, down from 1.5% last year.

HSBC and JPMorgan will continue to face the highest requirement - 2.5% of risk-weighted assets -- imposed on the banks on the list, which comprises 30 lenders.

The inclusion of China Construction Bank was probably driven by the size of its balance sheet and its expansion abroad, said Xuanlai He, a credit analyst at Commerzbank.

To access the complete Bloomberg News article hit the link below:

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