Deutsche bank may have to set aside less capital

Deutsche bank may have to set aside less capital

According to the latest statement of the international financial stability board (FSB), the premium for systemic importance will be only 2.0 percentage points instead of 2.5 percentage points, as recently envisaged. This is shown in a table published on monday by the financial stability council.

Currently, only HSBC and jpmorgan are classified in the so-called category 4, which in future will have to hold 2.5 percentage points more capital than other banks. A year ago, the german bank was also classified in this category by the FSB. Now, like citigroup, they fell back into the third group. The building is also home to the british bank barclays and the french bank BNP paribas.

The top category, which potentially has to hold 3.5 percentage points more capital as a risk buffer than non-systemically important institutions, remains empty. Not on the list of the world’s most important money houses is still commerzbank. A year ago, the financial stability board removed germany’s second-largest bank from the list of banks whose collapse could pose a serious threat to the stability of the global economy.

The industrial and commercial bank of china has been added to the current list, bringing the total number of banks to 29. The FSB intends to update the list again in a year’s time. This is then the basis for the actual capital charges. From the beginning of 2016, these will then be gradually introduced. As of january 2019, they will be fully effective according to planning.

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