JPMorgan May Be Less Risky But the Finance System Isn’t
The bank has slipped down the FSB's risk table, but any sense that the world’s financial systems have become more resilient would be misplaced.
Quite a year.
Photographer: alexsl/iStockphotoFor the first time in three years, JPMorgan Chase & Co. is not the world’s most systemically important bank. The Wall Street giant slipped down a notch in the global assessment of the riskiest lenders — one of the few rankings where banks are eager to see themselves drop. There was good news for Goldman Sachs Group Inc., too, which was also deemed less risky than it was a year ago by the Financial Stability Board.
However, any relief that the world’s banking and financial systems have become more resilient would be misplaced. The trillions injected into markets this year by central banks and governments have fanned an explosion of banking activities that’s yet to be captured by the FSB’s risk metrics.