VW’s first customer wins in Switzerland

Bankruptcy of UBS or its rival Credit Suisse could undermine the global financial system. The two main Swiss banks are still included in the classification of systemic institutions on a global scale, established by the FSB.

The Rhine Institute has kept the two big Swiss banks in category 1, that is to say the least risky, according to indications provided on Monday. For this cohort, FSB regulators apply an additional capital buffer of 1.0%.

The Americans Morgan Stanley, Wells Fargo and Bank of New York Mellon, the French Crédit Agricole, BPCE and Société Générale as well as the Royal Bank of Canada keep UBS and Credit Suisse company in category 1, the most provided among all.

JPMorgan Chase is now alone at the head of the world ranking. The American giant has moved to the second highest category in terms of systemic risk – the 4 – for which an additional capital buffer of 2.5% applies. In 2020, the group appeared in the “bucket” 3 (+ 2.0%), where the French bank BNP Paribas, the American Citigroup and the British HSBC are now located.

No institution appears in cohort 5 (+ 3.5%), the most critical in terms of risks, decided the regulators based in the Rhine city.

The list of names of the 30 systemic banks is identical to that published last year, some institutions having only changed category.

The FSB monitors the financial system on behalf of the G20 countries and assesses not only the size of companies, but also the risks they represent with regard to their activities and their interconnection. Based on this analysis, the institute may impose, tighten or ease funding restrictions.

This article was published automatically. Sources: ats / awp / reu

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