Banks say multiple-point-of-entry firms gain TLAC advantage

No equivalent cap on aggregate buffer for G-Sibs that face resolution as single group

Banks that are broken up into multiple parts for resolution may gain favourable TLAC treatment

Global banks are worried new rules on total loss-absorbing capacity (TLAC) impose more onerous requirements on firms that would be resolved as a single group by their home authorities compared with multiple-point-of-entry (MPE) firms – or those that would first be broken up, with each part handled locally.

From 2019, global systemically important banks (G-Sibs) will have to hold equity and bail-inable debt worth at least 16% of their risk-weighted assets, rising to 18% from 2022. Under the

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