TLAC concessions reduce impact for Japan banks

Revised rules cut upper threshold for G-Sibs to 18% from 20% of RWA

bank-of-tokyo-mitsubishi-ufj
Mitsubishi UFJ is in the 1.5% capital bucket

Japan's three megabanks will be able to cope with new rules on total loss-absorbing capacity (TLAC) with little operational difficulty, according to two Tokyo-based sources that have been close to discussions.

Previously, there had been some concern that there would not be enough domestic investors to purchase all the debt that Japanese banks would have to issue.

The new draft rules are expected to be published on Monday ahead of the meeting of the Group of 20 nations, which will take place in

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