While France's Crédit Agricole (CRARF) was upgraded to a higher category, the Financial Stability Board (FSB) reclassified Bank of America (BAC, Financial) to a lower tier on its global systemically important banks (GSIBs).
These "buckets," or tiers, decide the extra capital buffers needed for 29 GSIBs to improve their loss absorbency and lower systematic risk. The FSB added, the reclassification follows an assessment of banks' complexity and underlying activity.
Crédit Agricole progressed to bucket two; the FSB noted that the revised loss absorbency requirements for higher categories would take effect from January 1, 2026. Bank of America was demoted to bucket two; Citigroup (C, Financial) and HSBC (HSBC, Financial) occupy bucket three alone. In bucket four, JPMorgan Chase (JPM) stays the top-ranked GSIB; bucket five, the highest category, is still empty. The annual assessment captures changes in global financial activity and complexity, therefore affecting the relative risk and capital needs of significant financial institutions.
