S&P Capital IQ and SNL, a business unit of McGraw Hill Financial and a leading provider of research, analytics and data, has released new analysis showing that the world’s 30 most systemically risky banks have risk exposure that amounts to 76.7% of worldwide gross domestic product.<\/p>\n
The ratio of total exposures to GDP is not an inherently risky number, but it does demonstrate how concentrated financial risk has become, especially considering the list of 30 G-SIBs is top-heavy. SNL\u2019s report shows that the world’s 30 G-SIBs have $59.759 trillion in exposures; the top 20 banks account for 83% of that total.<\/p>\n
Further, total exposures among G-SIBs are particularly concentrated geographically. Just five countries are home to the headquarters of 23 G-SIBs with total exposures of $50.203 trillion, or 64.5% of world GDP.<\/p>\n
Among the five nations with at least three G-SIBs \u2014 China, France, Japan, the United Kingdom and the United States \u2014 France and the U.K. have the highest G-SIB exposure-to-GDP ratios at 287.8% and 273.7%, respectively. A fourth Chinese bank joined the G-SIB list this year, raising the country’s ratio to 121.3%. Japan had a similar ratio at 134.9%. The ratio in the U.S. was 86.4%, despite the fact that the country has by far the most G-SIBs, at eight. Comparing individual countries can be somewhat complicated, as European banks tend to do more business internationally than U.S. or Asian banks. The four G-SIBs with the highest scores in the cross-jurisdictional activity category are all Europe-based.<\/p>\n
For the eight U.S. G-SIBs in aggregate, total exposures increased more than 2% year over year in 2014. However, that rate of growth was lower than the nation’s GDP growth rate, meaning the exposures-to-GDP ratio declined to 86.4% in 2014 from 88.1% in 2013.<\/p>\n","protected":false},"excerpt":{"rendered":"
Research shows concentrated financial risk as the world’s 30 G-SIBs have $59.759 trillion in exposures; the top 20 banks account for 83% of that total<\/p>\n","protected":false},"author":20,"featured_media":46818,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1470],"tags":[1671,1657,1968,1651,1437,2103],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/46820"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=46820"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/46820\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/46818"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=46820"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=46820"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=46820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}