Banking Crisis: These 30 banks are necessary for the world, if even one sinks, there will be devastation, see how many banks of India are there in this list – what are global systemically important banks why they are necessary
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Credit Suisse is not only the second largest bank in Switzerland, but it is among the top 30 most important banks in the world. Every year the Financial Stability Board releases a list of 30 such banks which are important for maintaining the financial health of the world. These are called Global Systemically Important Banks (G-SIBs). These are the banks that the world cannot allow to sink at any cost. If even one bank included in this list sinks, a tsunami can come in the financial system of the world. This is the reason why the Swiss government is trying to save this bank at all costs. It is he who got the deal done between Credit Suisse and UBS. The next list of these banks will come in November this year.
Four banks of China, not a single bank of India
There are 13 banks in Europe, 10 in North America and seven in Asia in the list of G-SIBs. Talking about North America, nine out of 10 banks are from America while one bank is from Canada. American banks include JP Morgan, Bank of America, Citigroup, HSBC, Goldman Sachs, Bank of New York, Morgan Stanley, State Street, and Wells Fargo. Whereas in Asia, four banks are from China and three from Japan. Banks in China include the Industrial and Commercial Bank of China, the Agricultural Bank of China, the China Construction Bank, and the Bank of China. There is not a single Indian bank in this list. Talking about European banks, it includes Barclays, BNB Paribas, Deutsche Bank, Credit Suisse, Groupe BPCE, Groupe Crédit Agricole, IAG, Santander, Societe Generale, Standard Charted, UBS and UniCredit.
Banking Crisis: India’s ₹ 20 lakh crore business in crisis, threat to millions of jobs, know what is the reason
The central banks of the world also select systemically important banks for their country. RBI does the work of monitoring the banking system in India. In whichever bank he finds fault, he asks him to rectify it immediately. Due to the strictness of RBI, India has remained untouched from the Global Crisis till now. Most of the banks in India are safe. But still not all banks are the same. RBI itself has considered three banks SBI, ICICI Bank and HDFC as Systemically Important Banks. They have been considered important for the country’s economy. That is, RBI will never let these banks sink. Similarly, China has put 19 banks in the SIB list.
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