FSB published a call for public feedback on the technical implementation of its total loss-absorbing capacity (TLAC) standard for global systemically important banks (G-SIBs). The submitted views and evidence should help assess whether the implementation of the TLAC standard is proceeding in a manner consistent with the TLAC principles and Term Sheet. FSB will report on the results of its monitoring by the time of the G20 Summit in June 2019. Comments should be submitted by August 20, 2018.
FSB had issued the TLAC standard in November 2015. The TLAC standard seeks to ensure that G-SIBs have, at all times, sufficient loss-absorbing and recapitalization capacity available in case of resolution. The TLAC standard will be phased in from January 2019. G-SIBs will be required to meet a minimum TLAC requirement of at least 16% of the resolution group’s risk-weighted assets (TLAC RWA Minimum) from January 01, 2019 and at least 18% from January 01, 2022. Minimum TLAC must also be at least 6% of the Basel III leverage ratio denominator (TLAC Leverage Ratio Exposure, or LRE, Minimum) from January 01, 2019 and at least 6.75% from January 01, 2022. G-SIBs headquartered in the emerging market economies will be required to meet the 16% RWA and 6% LRE Minimum TLAC requirement no later than January 01, 2025, along with the 18% RWA and 6.75% LRE Minimum TLAC requirement no later than January 01, 2028.
Comment Due Date: August 20, 2018
Keywords: International, Banking, TLAC, G-SIBs, Systemic Risk, Assessment of Implementation, FSB
Previous ArticleFSB Publishes Toolkit to Mitigate Misconduct Risk
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
The Bank of England (BoE) published questions and answers (Q&A) on OSCA to BEEDS migration for statistical reporting as well a presentation from the project overview session held with statistical reporters.
The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology.