China rolls out loss-absorbency rules for systemic banks

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China will require its four global systemically important banks (G-Sibs) to follow the stricter capital adequacy requirements laid out in the wake of the 2008 financial crisis.

Top policy-makers decided to roll out minimum requirements for total loss-absorbing capacity (TLAC), a standard finalised by the Financial Stability Board in 2015. TLAC comprises capital and debt securities that can be bailed in if the bank enters resolution.

Three top financial agencies – the People’s Bank of China

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