A draft list of the banks that will have to pay the highest extra 2.5% capital surcharge because they are considered the most “systemically important financial institutions,” is out.According to Bloomberg News, which got a copy of the draft list, which will be revised, the biggest “Sifis” are: Citi, JPMorgan, BNP Paribas SA, Royal Bank of Scotland, and HSBC.
Of course the other 29 banks that the FSB determined to be Sifis are on the list, too. The draft list puts firms’ extra capital surcharge at between 1 – 2.5% based on its belief of how much damage that firm could potentially do to the global economy.
Here’s how it breaks down for the other Sifys (there are 29 in total):
Bank of America – 2%
Barclays – 2%
Deutsche Bank – 2%
Goldman Sachs – 1.5%
Morgan Stanley – 1.5%
BNYMellon – 1.5%
Credit Agricole – 1.5%
Credit Suisse – 1.5%
UBS AG – 1.5%
The remaining 15, which includes Wells Fargo, Societe Generale, and Dexia – 1%
The regulators stressed that the list is “provisional” and will be revised many times, according to Bloomberg.