Financial and Monetary Systems

Which banks hold the global financial system together?

Mike Bird

This article is published in collaboration with Business Insider.

“Too big to fail” became a household phrase during the financial crisis, when bailouts in 2008-2009 provided a safety net for the crumbling global banking system.

As a response to the crisis, the G20 countries set up the Financial Stability Board, a global watchdog for financial institutions. One of its responsibilities is to identify the banks that can’t go bust without causing a domino effect.

The FSB calls such institutions global systemically important banks, or GSIBs, and on Tuesday it published a list of them.

The banks are split into buckets, with each corresponding to higher loss absorbency requirements based on how important to the global financial system the bank is. The higher the number, the more important the bank and the more capital it will be required to hold.

Here’s the full list:

151201-financial stability board important banks

Financial Stability Board

There’s only one change this year — the Spanish lender BBVA is out, and the China Construction Bank is in, reflecting the way that the world economy is changing.

Other than that, all the groups stay the same — bucket Nos. 2, 3, and 4 are still precisely where they were.

Publication does not imply endorsement of views by the World Economic Forum.

To keep up with the Agenda subscribe to our weekly newsletter.

Author: Mike Bird is a European markets editor.

Image: A man walks past buildings in a central business district.REUTERS/Nicky Loh. 

Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

Sign up for free

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Stay up to date:

Financial and Monetary Systems

Share:
The Big Picture
Explore and monitor how Financial and Monetary Systems is affecting economies, industries and global issues
World Economic Forum logo

Forum Stories newsletter

Bringing you weekly curated insights and analysis on the global issues that matter.

Subscribe today

How digital platforms and AI are empowering individual investors

Rishi Kapoor

December 20, 2024

How investing in connectivity and digital infrastructure can be a catalyst for inclusion and empowering people

About us

Engage with us

  • Sign in
  • Partner with us
  • Become a member
  • Sign up for our press releases
  • Subscribe to our newsletters
  • Contact us

Quick links

Language editions

Privacy Policy & Terms of Service

Sitemap

© 2024 World Economic Forum