Of Special Interest
Filters
- Newslink Trends-The Global Strategic Perspective
- Juniper Research says digital wallet users to exceed 4.4 billion by 2025, as mobile drives digital payments’ revolution
- Criminals exploit COVID-19 pandemic with rise in scams targeting victims online
- Equifax says Open Banking proving pivotal to pandemic lending
- Consumer confidence in banks, credit card providers and investments remain stable as demand supercharges digital finance says Toluna research
- Mintos says Europeans are starting to embrace investing
- US banks see IT modernisation as a way to improve customer experience
- Risk mitigation in global trade depends on digitisation-Andrew Raymond, CEO, Bolero International comments
- Juniper Research new study says the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020
- CMA issues fifth publication over 3 years of the service quality league table of personal and business current account providers
- Barclays says scammers take advantage of COVID-19, cashing in on nations’ uncertainty
- S&P Global report says financial market infrastructure sector's earnings likely to cool off In second half
- Global banking market capitalisation slumps by over 30% amid pandemic says Buyshares research
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
- Banks can save the world from climate change, says former UN climate chief
- Research by NatWest reveals gender divide over attitudes to saving
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
26th July 2011
Estimates of SIFI capital surcharges applied by bank
Morgan Stanley has estimated the level of capital surcharges that would be applied to the largest banks under the additional capital the Systemically Important Financial Institutions (SIFI) banks will be required to hold. With the important caveat that this has been calculated using the banks current financials and importance to its country infrastructure. The Basel Committee published the factors that would be used to measure what additional capital the Systemically Important Financial Institutions (SIFI) banks would be required to hold. The five categories under which banks will be measured are Cross-jurisdictional activity, Size, Interconnectedness, Substitutability and Complexity. Each of the five items would carry a weight of 20%. All banks will be required to provide Core Tier 1 of 7%. In addition to this base level SIFI banks will be required to hold between 1% and 2.5% additional capital. There is a final tier of 3.5% reserved for banks that had been in the 2.5% and continue to grow and become even more systemically important. Initially there will be no banks within the 3.5% band.
Expected capital surcharge above minimum Core Tier 1 requirement of 7%. The Basel III capital levels come into force from 2016 and will be based on 2014 accounting data for the larger banks.
Surcharge 3.5% = total of 10.5%
- None
Surcharge of 2.5% = total of 9.5%
- Bank of America
- Barclays
- BNP Paribas
- Citigroup
- Deutsche Bank
- HSBC
- JPMorgan Chase
- Royal Bank of Scotland
Surcharge of 2.0% - total of 9%
- Credit Suisse
- Goldman Sachs
- Morgan Stanley*
- UBS
Surcharge of 1.5% total of 8.5%
- Crédit Agricole
- Dexia
- ING
- Mitsubishi UFJ*
- Santander
- Société Générale
- UniCredit
Surcharge of 1% total of 8%
- BBVA
- BNY Mellon
- BPCE
- Commerzbank
- Mizuho Financial
- Nordea Bank
- Rabobank
- State Street
- Wells Fargo
Sources: Based on Morgan Stanley analysis. This data appeared in an alternative format in the Financial Times. Items marked with * based upon Financial Times analysis.