Citi and JPMorgan overtake HSBC to top list of globally important banks

The Financial Stability Board has updated its annual rankings of the most globally systemic banks in the world, with Citi rising to the top of the pile alongside JPMorgan Chase.

HSBC dropped off the top spot in the rankings released by the FSB each year, which show the financial institutions which hold the most systemic importance within the context of the global economy.

The rankings were introduced by the G20 international leaders after the global financial crisis in 2008, in part to identify banks which were "too big to fail", and are separated by categories in terms of their loss absorbency requirements.

Citi joined JPMorgan in the second-highest bracket, HSBC dropping down to the third-highest bracket alongside the likes of BNP Paribas, Deutsche Bank and Bank of America.

No banks were considered to be so important to push in to the top category of loss absorbency requirements of 3.5%.

The group of global leaders also agreed that those banks which are judged to be the most important should be required to hold extra capital as a security measure.