Bank of America and ICBC climb in global systemic risk rankings
The Financial Stability Board (FSB) has adjusted its rankings of global systemically important banks (G-SIBs). Deutsche Bank was downgraded to the lowest risk category, while Bank of America and ICBC moved up to a higher tier. The changes reflect shifts in each bankās complexity and influence on the financial system.
In November 2025, the FSB reclassified Deutsche Bank due to its reduced complexity and lower interconnectedness with the international financial system. The German lender now sits in the lowest G-SIB tier, indicating it poses less systemic risk than many peers. Despite this, its share price showed minimal movement in after-hours trading following the announcement.
Meanwhile, Bank of America and Industrial and Commercial Bank of China (ICBC) were upgraded to the third-highest G-SIB category. Both institutions now face a 2.00 percentage-point capital surcharge, reflecting their increased systemic importance. JP Morgan Chase remains the only bank in the second-highest tier, with a 2.50 percentage-point surcharge.
No bank currently falls into the highest risk category, which would require a 3.50 percentage-point surcharge. All G-SIBs, including Deutsche Bank, must still meet regulatory standards to maintain global financial stability.
The reclassifications highlight ongoing shifts in the banking sectorās risk landscape. Deutsche Bankās downgrade suggests a reduced systemic footprint, while Bank of America and ICBC now face stricter capital requirements. The adjustments aim to strengthen the resilience of the global financial system.
