Featured Product

    PBC Publishes Notice on Issuance of TLAC Non-Capital Bonds by G-SIBs

    April 29, 2022

    The People's Bank of China (PBC) and the China Banking and Insurance Regulatory Commission (CBIRC) jointly published a Notice that sets out requirements for the issuance of "non-capital bonds" to strengthen the total loss-absorbing capacity (TLAC) of the global systemically important banks (G-SIBs).

    This Joint Notice uses the term "non-capital bonds with total loss absorbing capacity” to refer to the financial bonds issued by G-SIBs to meet the requirements of total loss-absorbing capacity, with the function of absorbing losses, yet not belonging to the capital of commercial banks. As per the Notice, the issuance of TLAC non-capital bonds by G-SIBs shall be supervised and managed by PBC and CBIRC in accordance with the financial bond issuance management regulations and banking regulatory rules. The total loss-absorbing capacity of non-capital bonds shall contain write-down or share conversion clauses. When a G-SIB enters the "disposal stage" and the Tier 2 capital instruments are all written down or converted into ordinary shares, PBC and CBIRC may require TLAC non-capital bonds to be written down or converted to common stock in whole or in part. The Notice also stipulates that issuers shall disclose the associated information on a quarterly basis and that issuers or investors may engage credit rating agencies to conduct credit ratings on non-capital bonds with TLAC. The Notice also states that the registration, custody, and settlement of non-capital bonds with TLAC shall be handled at a bond registration, custody, and settlement institution recognized by PBC.

    Keywords: Asia Pacific, China, Banking, TLAC, G-SIBs, Disclosures, Systemic Risk, Regulatory Capital, Basel, Non-Capital Bonds, CBIRC, PBC

    Featured Experts
    Related Articles

    EBA Sets Out Roadmap for 2023, Updates Reporting Framework 3.2

    The European Banking Authority (EBA) published its work program for 2023 as well as the technical package for phase 3 of version 3.2 of its reporting framework.

    September 30, 2022 WebPage Regulatory News

    FED Announces Launch of Climate Scenario Analysis Exercise in 2023

    The Board of Governors of the Federal Reserve System (FED) announced a pilot climate scenario analysis exercise for six largest banks in the U.S.

    September 29, 2022 WebPage Regulatory News

    BIS Paper Studies Impact of Fintech Lending on Small Businesses in US

    The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.

    September 26, 2022 WebPage Regulatory News

    UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks

    The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).

    September 26, 2022 WebPage Regulatory News

    EBA Launches EU-Wide Transparency Exercise in 2022

    The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.

    September 23, 2022 WebPage Regulatory News

    SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks

    The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."

    September 22, 2022 WebPage Regulatory News

    EC Rule Lists Advanced Economies for Market Risk Capital Calculations

    The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.

    September 21, 2022 WebPage Regulatory News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8523