Tokyo FinTech
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Tokyo FinTech

China’s Systemically Important Banks

Global systemically important banks (G-SIBs) are determined annually by the Financial Stability Board (FSB) in consultation with the Basel Committee on Banking Supervision (BCBS) and national authorities. The 2020 list of 30 institutions (unchanged in number from 2019, although some classifications, and therefore capital requirements, had been reduced) will be updated in November 2021, and includes the following four major Chinese banks:

Bucket 2, requiring 1.5% additional capital buffer

  • Bank of China
  • China Construction Bank
  • Industrial & Commercial Bank of China

Bucket 1, requiring 1% additional capital buffer

  • Agricultural Bank of China

In a domestic list of 19 systemically important banks, jointly issued by the People’s Bank of China (PBoC) and the China Banking and Insurance Regulatory Commission (CBIRC) on Friday, these four banks also form the highest-ranked cohort in the fourth group. The system was designed to have five groups, with the fifth group empty at this point. In descending order of importance, the remaining institutions are:

Third Group

  • Bank of Communications
  • China Merchants Bank
  • Industrial Bank

Second Group

  • Shanghai Pudong Development Bank
  • China Citic Bank
  • China Minsheng Banking Corp
  • Postal Savings Bank of China

First Group

  • Ping An Bank
  • China Everbright Bank
  • Hua Xia Bank
  • China Guangfa Bank
  • Bank of Ningbo
  • Bank of Shanghai
  • Bank of Jiangsu
  • Bank of Beijing

Thus the list comprises six state-owned commercial banks, nine joint-stock commercial banks and four city commercial banks, all of which will be subject to additional supervision by the PBoC and CBIRC.

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Norbert Gehrke

Norbert Gehrke

Passionate about strategy & innovation across Asia. At home in Japan. Connector of people & ideas.