Business & Finance

Royal Bank of Canada joins list of globally important banks

Published November 21, 2017 Updated November 21, 2017 09:40pm

The annual list of globally systemically important banks (G-SIBs) was issued on Tuesday by the Financial Stability Board (FSB), which was established after the 2007-09 global financial crisis to protect the world from future such shocks.

RBC said on Tuesday that it already meets a requirement for G-SIBs to hold an additional 1 percentage point capital buffer and does not expect any impact on its capital position as a result of the change.

Shares in RBC were up 0.3 percent in early trading.

Canada's banking regulator said the G-SIB designation and subsequent increased regulatory expectations were designed to reduce the likelihood of a banking failure and the potential impact that a failure would have on the global economy.

The Office of the Superintendent of Financial Institutions (OSFI) said RBC was well-positioned to meet the G-SIB requirements, which come into effect in January 2019.

 

Copyright Reuters, 2017