The case for TLAC and MREL

Banco Popular had a total of €64.4 billion of RWAs as of 2016, and so under the FSB’s TLAC rules, it would have held at least €11.6 billion of TLAC. That would be significantly more than the €7 billion Santander needed to raise for its acquisition of Popular’s assets, so the TLAC buffer looks as if it would have comfortably recapitalised the group.

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