Risk exposure exceeds 75% of world GDP at important banksStaff writer ▼ | November 26, 2015
The world's 30 most systemically risky banks have risk exposure that amounts to 76.7% of worldwide gross domestic product.
Report 30 G-SIBs have $59.759 trillion in exposures
SNL's 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.
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.
Among the five nations with at least three G-SIBs — China, France, Japan, the United Kingdom and the United States — 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.
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. ■