Japan's markets may struggle under weight of TLAC issuance

A lack of buyers for TLAC securities in Japan could force banks to look for investors offshore


Japan's megabanks are likely to need to issue more debt in order to meet new total loss-absorbing capacity (TLAC) rules from the Financial Stability Board (FSB) – but doubts remain about whether the domestic market can cope with such issuance.

Under the new rules, due to be finalised in November, the basic TLAC requirement will be between 16–20% of a bank's risk-weighted assets (RWA), with at least a third of this made up of senior debt instruments that can be easily converted to equity in the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here