The Financial Stability Board (FSB) launched a consultation on a minimum standard for total loss-absorbing capacity (TLAC) today, moving a step closer to ending the problem of ‘too-big-to-fail' banks.
A consultation document sets out plans to ensure global systemically important banks (G-Sibs) carry sufficient levels of debt that can be bailed in – converted from debt to equity – in the event the bank enters a process of resolution.
Mark Carney, the chairman of the FSB, hailed the proposals as a
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