UniCredit fell off “Bucket 1,” the least demanding of the G-SIBs. Credit Suisse also is off the list having been acquired by UBS, which got promoted to “Bucket 2.” Also promoted were the Agricultural Bank of China and China Construction Bank. JPMorgan Chase (JPM) is still at “Bucket 4,” the only bank in that category, while Bank of America, Citigroup and HSBC are still at “Bucket 3.” Bank of Communications, or BoCom, is on the list for the first time.
No bank has ascended to the level of Bucket 5, which requires the most capital. “The changes in the allocation of the institutions to buckets largely reflect the effects of changes in underlying activity of banks, with the cross-jurisdictional activity category being the largest contributor to score movements,” said the FSB. Investors in UniCredit have enjoyed a strong year, with the stock up 88% in 2023.
SOURCE: MarketWatch