UPDATE 2-Watchdog cuts extra capital requirements for UBS, C.Agricole

* 30 banks named as world's most systemically important -FSB

* Big banks must hold extra capital from 2016

* FSB adds Agricultural Bank of China to list of top banks

* HSBC, JPMorgan must hold extra 2.5 pct capital (Adds Breakingviews link)

By Steve Slater

LONDON, Nov 6 (Reuters) - Switzerland's UBS andFrance's Credit Agricole have been deemed byregulators as less important to the global financial system thana year ago and will not have to hold as much extra capital aspreviously forecast.

In contrast, Agricultural Bank of China has beenadded to the list of world's "systemically important" banks andwill need to hold extra capital from 2016.

Policymakers have said the world's biggest banks have tohold more capital than smaller rivals because of theirimportance to the global financial system. The extra capital serves as another layer of protection on top of minimum capitallevels for all banks.

The Financial Stability Board on Thursday issued a list of30 banks considered the most systemically important globally,dubbed G-SIBs. They must hold extra capital of between 1 and 2.5percent to make them less likely to fail in a crisis and causehavoc in financial markets.

The FSB, which coordinates financial regulation worldwide,named three Chinese banks, 16 European banks and eight U.S.banks on the list, plus three Japanese banks.

The banks will have to hold extra capital from the start of2016, with the full amount phased in over three years.

The regulator said UBS and Credit Agricole will have to holdextra capital of 1 percent. On last year's list, their capitalsurcharge was 1.5 percent.

HSBC and JPMorgan will have to hold 2.5percent of extra capital, after the FSB judged them to be thetwo most systemically important banks. That amounts to more than$30 billion of extra capital both banks have to hold.

Four banks - Barclays, BNP Paribas,Citigroup and Deutsche Bank - need to hold 2percent extra capital.

The FSB divides the systemically important banks intocategories, determined by their size, geographic spread,complexity and potential impact on the financial system.

For banks, being a G-SIB can be costly. In addition toholding extra capital, which depresses profitability, they alsocome under more intense regulatory scrutiny.

Big banks have already improved capital levels inpreparation for the FSB surcharges, which the regulator hastried to flag in draft lists, but the need to keep capitalreserves high will leave them little room for manoeuvre.

(For a full list of banks, click on: http://www.financialstabilityboard.org/publications/r_141106b.pdf)

(Editing by Kirstin Ridley and Jane Merriman)