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RBC Joins Global Ranks of Banks Deemed 'Too Big to Fail'

Published on November 24, 2017
The Royal Bank of Canada has become the first Canadian lender to be added to the Financial Stability Board’s list of global systemically important banks, which are deemed too big to fail.

  • The Financial Stability Board (FSB), in consultation with Basel Committee on Banking
  • Supervision (BCBS) and national authorities, has identified the 2017 list of global
  • systemically important banks (G-SIBs), using end-2016 data and the updated assessment
  • methodology published by the BCBS in July 2013
  • The FSB added RBC as it removed French bank Groupe BPCE, keeping the total number of institutions on the list at 30.
  • FSB co-ordinates the work of national financial authorities and international standard-setting bodies.
  • Banks that receive this global systematically important banks (G-SIBs) designation face increased regulatory expectations designed to reduce the likelihood of a failure, and the ripple effects on the global economy. That includes a higher capital buffer and higher supervisory expectations.

About FSB

  • The FSB was established in April 2009 as the successor to the Financial Stability Forum (FSF). 
  • The FSB’s predecessor institution the FSF was founded in 1999 by the G7 Finance Ministers and Central Bank Governors following recommendations by Hans Tietmeyer, President of the Deutsche Bundesbank.

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