Both the Royal Bank of Scotland (RBS) and Nordic bank Nordea have been dropped from a list of the most important banks in the world that was released by the Financial Stability Board (FSB).
The list of the FSB is a compilation of all the banks that are required to hold additional capital that is equivalent to at least one percent of its risk-weight assets, because of their size and impact on the global financial system.
The banks that are included in the list are subject to stricter requirements in terms of total loss-absorbing capacity, capital buffers, supervisory expectations, and resolvability.
Meanwhile, BPCE, a French bank, was added to the list this year.
The list started in the wake of the financial crisis way back in 2008, in order to gain the help of huge banks in shielding the taxpayers from any future crashes.
RBS was at one point named as the largest bank in the world, before needing a bailout by the government of the United Kingdom in the wake of the crash.
The bank is currently majority-owned by the government. It means that the released capital that was previously reserved for the list could now be returned back to the taxpayers of the United Kingdom.
The news comes in the wake of more than £6 billion being wiped off the collective value of Lloyds, Barclays, and RBS in a single day yesterday, as the turmoil over the Brexit deal of Theresa May, the British Prime Minister, affected the banking sector.
RBS led the said drop after falling by more than nine percent and losing approximately £2.76 billion off its value. Today, its share price dropped by a as much as another 4.8 percent.
This afternoon, a spokesperson from the RBS stated: “We note this decision by the FSB which reflects our progress in building a much simpler, safer UK-focused bank.”