A financial watch dog within the U.S. Government’s Treasury Department has boosted Well Fargo’s ranking in the global financial system.
As per the findings of a U.S. government research group, Wells Fargo & Co is the only large U.S. bank to have played a “significantly” more role in the global financial system in recent years.
As per the Office of Financial Research, a financial stability watchdog housed within the U.S. Treasury Department, going by the 2014 data from the Basel Committee on Banking Supervision, Wells Fargo & Co., has gained systemic importance in the world economy.
While studying the data, the financial watchdog assigned a score to each bank based on factors such as size, complexity, cross-jurisdictional activity, interconnectedness, and the exclusiveness of accessibility of its products.
Financial regulators in the U.S. had assigned Wells Fargo as a systematically important bank whose cost of failure would be too great for the world’s financial economy.
Its ratings have increased by 18% from 2013, which is more than it has for its peers. The systemic threat posed by a few, including JPMorgan, have in fact decreased.
The impact of being designated as a bank of system importance is that capital reserve requirements for the bank will jump.
A Wells Fargo spokesman did not immediately offer a comment
Categories: Economy & Finance, Strategy, Uncategorized
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