Total Lossabsorbing Capacity Reserve Bank of （总Lossabsorbing能力储备银行）.pdfVIP

Total Loss-absorbing Capacity Penelope Smith and Nicholas Tan* Total loss-absorbing capacity (TLAC) is a key part of the G20’s regulatory reform agenda to address the problems associated with financial institutions that are ‘too big to fail’. By strengthening the loss-absorbing and recapitalisation capacity of global systemically important banks (G-SIBs), the TLAC standard is intended to help ensure that these large, interconnected and complex financial institutions can be resolved in an orderly manner if they fail, without the need for financial support using public funds. Introduction of a failed G-SIB so as to allow its critical functions to continue while potentially winding down other In November 2015, the G20 Leaders endorsed a parts of its business. This is achieved by establishing new Financial Stability Board (FSB) standard for TLAC a minimum requirement for financial instruments for G-SIBs, which, as currently identified by the FSB held on the balance sheet that are readily available (2015b), include 30  of the world’s largest banks.1 to absorb losses and, in the event that a G-SIB fails, The finalisation of the TLAC standard is a significant enable it to be recapitalised through the writedown milestone in the international policy reform agenda