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G-SIB bank list down to 29 after Nordea, RBS drop out, Groupe BPCE re-enters

The total number of global systemically important banks, or G-SIBs, dropped to 29 from 30, after Finland-based Nordea Bank Abp and Britain's Royal Bank of Scotland Group PLC dropped out of the annual list disclosed by the Financial Stability Board.

Nordea, which shifted its headquarters to Helsinki in October, and RBS were previously in the bottom bucket of banks that face additional buffers of 1.0% capital to risk-weighted assets. Paris-based Groupe BPCE, which had been replaced in the list by Royal Bank of Canada in 2017, re-entered the 1.0% bucket, but will not need to boost reserves because the decision was anticipated, Les Echos reported.

Global regulators require the G-SIBs to hold extra capital to avoid a repeat of the 2008 financial crisis.

In other alterations, U.S. giant Bank of America Corp. moved down a notch from 2017, reducing its extra capital requirement to 1.5% of RWA from 2.0%. China Construction Bank Corp. also fell a level, leaving it facing a 1.0% additional capital buffer.

JPMorgan Chase & Co. remains the sole financial institution in the highest of the occupied buckets, carrying a 2.5% capital surcharge, according to the list released Nov. 16.

In addition to the four occupied buckets, there is a fifth bucket with a capital requirement threshold of 3.5%, although it is currently empty.

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Brian McCulloch contributed to this report.