The Financial Stability Board (FSB) has published its Principles on the Loss Absorbing and Recapitalisation Capacity of globally systemically important banks (G-SIBs) in Resolution and Total Loss Absorbing Capacity (TLAC) term sheet. The Basel Committee welcomes comments on the TLAC holdings consultative document until Friday 12 February 2016.
The FSB has also issued the final TLAC standard for G-SIBs. The TLAC standard defines a minimum requirement for the instruments and liabilities that should be readily available for bail-in in the context of resolution of G-SIBs. Authorities’ may under the applicable resolution law also expose other liabilities to loss through bail-in or the application of other resolution tools.