Bail-in ambiguity hands funding advantage to Japanese G-Sibs

Financial Stability Board wants Japan to clarify the conditions under which it can use its resolution powers

Good buy: investors associate Japanese TLAC with lower risk

Uncertainty surrounding whether the Japanese authorities would provide pre-emptive support to troubled banks rather than bailing in their debt has sparked concern that the country’s megabanks are enjoying a cheaper cost of funding than their global peers.

So far, Japan’s three megabanks – Mitsubishi UFJ, Sumitomo Mitsui and Mizuho – have issued more than $30 billion worth of bonds, which form