US bank systemic risk indicators stay elevated through Q2

Four top Wall Street banks saw their systemic risk scores increase over the three months to end-June, with most in line to assume higher capital surcharges as a result, unless they’re able to shrink their footprints by year-end.

The average systemic risk score across the eight too-big-to-fail US banks for Q2 2020 was 497 basis points, flat on Q1 but still 27bp higher than at end-2019.

Custody bank State Street saw its score rise the most over the second quarter, by almost 17bp to 228bp, close