China | How asset securitization can help Chinese G-SIBs to meet the TLAC rule

Summary

The TLAC proposal require G-SIBs to hold additional eligible instruments supplementary to Basel III requirement. China’s regulators could help their G-SIBs to overcome the funding gap by accelerating asset securitization, the shortfall would more than halve if the four Chinese G-SIBs could increase the portion of securitized assets to 50% of their consumer loans.

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