Bank of America (BAC) and Industrial and Commercial Bank of China (OTCPK:IDCBY) (OTCPK:IDCBF) face higher capital buffer requirements, according to the latest G-SIBs list published by the Financial Stability Board on Thursday.
The FSB, in consultation with the Basel Committee on Banking Supervision and national authorities, has published the 2025 list of global systemically important banks.
The financial institutions are allocated to buckets corresponding to the capital buffers they are required to hold. The higher loss absorbency requirement established in the 2025 list will be effective beginning January 1, 2027, if there is a bucket increase compared to 2024.
According to the latest list, Bank of America and Industrial and Commercial Bank of China have moved from bucket 2 to bucket 3.
Deutsche Bank (DB) has moved to a lower bucket, i.e., from bucket 2 to bucket 1. In the case of a bucket decrease, the lower level of loss absorbency required is expected to be effective immediately.
JPMorgan Chase (JPM) remains in bucket 4, with the highest capital buffer requirement among the 29 G-SIBs.
Next update to the list of global systemically important banks is set to be published in November 2026.