* China's ICBC bank added to list for first time
* Citi, Deutsche, BNY Mellon drop a band; Agricole up one
* Still no bank in top 3.5 percent band
By Huw Jones
LONDON, Nov 11 (Reuters) - JP Morgan and HSBC topped the list of the world's top 29 banks that musthold extra capital from 2016 because of their size and reach,the Financial Stability Board (FSB) said on Monday.
The FSB is the regulatory taskforce for the 20 biggesteconomies, whose leaders agreed in 2011 on extra capitalrequirements to keep top lenders stable in rocky markets.
The aim is to shield taxpayers from having to bail out banksas they did in the 2007-2009 financial crisis.
The extra capital requirements range from 1 to 3.5 percentspread over five "buckets", with full compliance by 2019. Theycome on top of the 7 percent minimum capital holdings all banksacross the world must have by 2019.
The FSB was publishing an annual update of its list ofglobally systemic banks with still no bank occupying the top"bucket" with a 3.5 percent extra capital buffer requirement.
Many banks on the list already comply or exceed its totalcapital requirements due to supervisory and market pressures.
A second Chinese bank, Industrial and Commercial Bank ofChina (ICBC), has been added to the list, increasing the numberof big banks by one to 29 compared with last year's update. ICBCis the world's biggest bank by market capitalisation.
Next year's list from the FSB in November will determinewhich banks will actually have to comply with the new surchargerule from 2016.
Under the latest list, HSBC and JPMorgan would have to holdan extra 2.5 percent of risk-weighted core capital.
Barclays, BNP Paribas, Citigroup and Deutsche Bank have beenplaced into the 2 percent surcharge bucket - the latter twodropping from the 2.5 percent band.
Bank of America, Credit Suisse, Goldman Sachs, CreditAgricole, Mitsubishi UFJ, Morgan Stanley and Royal Bank ofScotland and UBS face a 1.5 percent surcharge.
The following banks were listed under the 1 percentsurcharge "bucket": Bank of China, BNY Mellon, BBVA, GroupeBPCE, Industry and Commercial Bank of China, ING, Mizuho,Nordea, Santander, Societe Generale, Standard Chartered, StateStreet, Sumitomo Mitsui, Unicredit and Wells Fargo.
Bank of New York Mellon has dropped a bucket from lastyear's list, while Credit Agricole has been pushed up one band.