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
    News

    EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis

    The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.

    November 28, 2023 WebPage Regulatory News
    News

    EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules

    The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.

    October 31, 2023 WebPage Regulatory News
    News

    BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks

    As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.

    October 19, 2023 WebPage Regulatory News
    News

    BCBS and EBA Publish Results of Basel III Monitoring Exercise

    The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.

    October 18, 2023 WebPage Regulatory News
    News

    PRA Updates Timeline for Final Basel III Rules, Issues Other Updates

    The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.

    October 18, 2023 WebPage Regulatory News
    News

    US Treasury Sets Out Principles for Net-Zero Financing

    The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.

    October 17, 2023 WebPage Regulatory News
    News

    EC Launches Survey on G7 Principles on Generative AI

    The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.

    October 14, 2023 WebPage Regulatory News
    News

    ISSB Sustainability Standards Expected to Become Global Baseline

    The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.

    September 18, 2023 WebPage Regulatory News
    News

    IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance

    Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.

    September 18, 2023 WebPage Regulatory News
    News

    BCBS Assesses NSFR and Large Exposures Rules in US

    The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.

    September 14, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8938