TLAC

In this publication you will find, on a weekly basis, our selection of the most relevant news regarding financial regulation.

Who will pay for the next banking crisis in Europe, and how? One of the lessons learnt from the last global financial crisis is that there must be an end to public bail-outs of banks. To achieve this, it is necessary to define which creditors and which liabilities absorb losses in the event of an institution’s resolution.

The Basel II agreement, adopted in 2004, introduced greater sensitivity to risk in banks’ capital requirements, which developed their own models in which capital is raised or lowered according to the risk of the assets involved.

On 11 December 2015, the Bank of England published its approach on setting the MREL for all UK banks, building societies and certain investment firms. The consultation is open for comments until 11 March 2016. This analysis will provide a summary of the proposal, with a focus on an important feature of the document: the fi…

The FSB published on last November 9th a centerpiece of global financial reform, which is expected to be adopted at the G20 summit in Antalya next November 15th and 16th.

After one year of intense debate in the financial community, on 9 November the Financial Stability Board (FSB) published its final standards on the Total Loss Absorbing Capacity (TLAC) requirements for global systemically important banks “G-SIBs” and the findings of the Quantitative Impact Study (QIS) conducted by the FSB .…