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JPMorgan Again Tops FSB's G-SIB List: What Does This Mean?
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Key Takeaways
JPMorgan remains in bucket 4 on the FSB's G-SIB list, requiring the strictest capital standards.
The bank must maintain a 2.5% CET1 capital buffer due to its systemic global significance.
JPMorgan shares are up 30.6% YTD, with 2025 and 2026 earnings estimates trending upward.
JPMorgan (JPM - Free Report) has once again been ranked as the world’s most systemically important bank, topping the Financial Stability Board’s (FSB) annual list of Global Systemically Important Banks (G-SIBs). The designation places the company in the highest “bucket 4” category, underscoring its status as the only bank requiring the strictest capital and supervisory standards.
JPMorgan has been a category 4 bank in the FSB's G-SIB list since the 2021 list was published.
The G-SIB list identifies institutions whose size, complexity and interconnectedness make them critical to the stability of the global financial system. Banks at the top of the framework must hold higher capital buffers to ensure they can absorb losses and continue operating in the event of severe financial stress. For JPMorgan, this means maintaining an additional 2.5% Common Equity Tier 1 (CET1) capital buffer on top of baseline requirements.
Topping the list does not necessarily mean JPMorgan is the largest bank by assets. Rather, it reflects the bank’s vast global footprint, cross-border operations and deep linkages with financial markets. These characteristics make its resilience central to preventing systemic contagion, a lesson reinforced since the 2008 financial crisis.
The ranking provides a structured mechanism to monitor systemic risk and calibrate oversight. Also, the designation signals strength and stability, even if the added capital requirements can modestly temper returns. Topping the G-SIB list is not a sign of financial distress. Instead, it highlights JPMorgan’s outsized importance to the global banking ecosystem and the ongoing efforts to safeguard the international financial system from large-scale disruptions.
Where Do JPMorgan’s Peers Stand in FSB's 2025 G-SIB List?
Per the 2025 G-SIB list, Bank of America has been moved to a higher bucket, i.e., from bucket 2 to bucket 3. Now, the company must hold an extra capital buffer of 2% and not 1.5%. As the bucket increases lead to higher required loss-absorbing capital, the buffer increase for Bank of America will become effective from Jan. 1, 2027.
On the other hand, Citigroup’s placement in the 2025 G-SIB list hasn’t changed. The bank continues to be in bucket 3 since 2017, when it moved from category 4. Thus, now, Citigroup is required to hold a capital buffer of 2%.
JPMorgan’s Price Performance, Valuation and Estimates
JPMorgan shares have gained 30.6% so far this year.
Image Source: Zacks Investment Research
From a valuation standpoint, JPM trades at a 12-month trailing price-to-tangible book (P/TB) of 3.14X, above the industry average.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for JPMorgan’s 2025 earnings implies a 2.5% rise on a year-over-year basis, while 2026 earnings are expected to grow at a rate of 4.7%. In the past 30 days, earnings estimates for 2025 and 2026 have moved upward.
Image: Bigstock
JPMorgan Again Tops FSB's G-SIB List: What Does This Mean?
Key Takeaways
JPMorgan (JPM - Free Report) has once again been ranked as the world’s most systemically important bank, topping the Financial Stability Board’s (FSB) annual list of Global Systemically Important Banks (G-SIBs). The designation places the company in the highest “bucket 4” category, underscoring its status as the only bank requiring the strictest capital and supervisory standards.
JPMorgan has been a category 4 bank in the FSB's G-SIB list since the 2021 list was published.
The G-SIB list identifies institutions whose size, complexity and interconnectedness make them critical to the stability of the global financial system. Banks at the top of the framework must hold higher capital buffers to ensure they can absorb losses and continue operating in the event of severe financial stress. For JPMorgan, this means maintaining an additional 2.5% Common Equity Tier 1 (CET1) capital buffer on top of baseline requirements.
Topping the list does not necessarily mean JPMorgan is the largest bank by assets. Rather, it reflects the bank’s vast global footprint, cross-border operations and deep linkages with financial markets. These characteristics make its resilience central to preventing systemic contagion, a lesson reinforced since the 2008 financial crisis.
The ranking provides a structured mechanism to monitor systemic risk and calibrate oversight. Also, the designation signals strength and stability, even if the added capital requirements can modestly temper returns. Topping the G-SIB list is not a sign of financial distress. Instead, it highlights JPMorgan’s outsized importance to the global banking ecosystem and the ongoing efforts to safeguard the international financial system from large-scale disruptions.
Where Do JPMorgan’s Peers Stand in FSB's 2025 G-SIB List?
JPMorgan’s two closest peers are Bank of America (BAC - Free Report) and Citigroup (C - Free Report) .
Per the 2025 G-SIB list, Bank of America has been moved to a higher bucket, i.e., from bucket 2 to bucket 3. Now, the company must hold an extra capital buffer of 2% and not 1.5%. As the bucket increases lead to higher required loss-absorbing capital, the buffer increase for Bank of America will become effective from Jan. 1, 2027.
On the other hand, Citigroup’s placement in the 2025 G-SIB list hasn’t changed. The bank continues to be in bucket 3 since 2017, when it moved from category 4. Thus, now, Citigroup is required to hold a capital buffer of 2%.
JPMorgan’s Price Performance, Valuation and Estimates
JPMorgan shares have gained 30.6% so far this year.
Image Source: Zacks Investment Research
From a valuation standpoint, JPM trades at a 12-month trailing price-to-tangible book (P/TB) of 3.14X, above the industry average.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for JPMorgan’s 2025 earnings implies a 2.5% rise on a year-over-year basis, while 2026 earnings are expected to grow at a rate of 4.7%. In the past 30 days, earnings estimates for 2025 and 2026 have moved upward.
Image Source: Zacks Investment Research
JPM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.