Unicredit Removed From Global Bank Ranking; UBS Upgraded After Credit Suisse Takeover

By Helena Smolak

The Financial Stability Board removed Italy's UniCredit from its list of global systemically important banks and moved UBS Group up a category following its takeover of Credit Suisse.

The international body, which monitors and makes recommendations about the global financial system, said Monday that it upgraded UBS to the so-called bucket 2 category that requires higher capital buffers than bucket 1. The second category houses banks such as Deutsche Bank and Goldman Sachs.

Credit Suisse was removed from the list following UBS's acquisition. The FSB added China's Bank of Communications to the list in the first category, in which institutions must hold 1% in additional equity capital as a percentage of risk-weighted assets, compared with 1.5% in the second category.

The new capital requirements don't have to be met until Jan. 1, 2025.

The FSB began the annual rankings in the aftermath of the global financial crisis, requiring the largest global banks to maintain a supplementary capital buffer, stratified across five designated buckets, and undergo more rigorous scrutiny of their operations.

Write to Helena Smolak at [e-mail]

(END) Dow Jones Newswires

November 27, 2023 09:13 ET (14:13 GMT)

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