The Royal Bank of Canada looks set to be the country’s first bank and mortgage lender to appear on a global list of financial institutions that are systematically important globally. Canaccord Genuity analyst Gabriel Dechaine says that the bank is just below the threshold which would deem it ‘too big to fail’ and if it makes the updated list in November it will be hit with additional capital requirements. Dechaine said in a client note that RBC already meets the current additional requirements but if it is included on the list it would have to continue to stay in step with other ‘Bucket 1’ banks in the future.
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