Regulators lean towards contractual bail-in for China TLAC

New legislation would not be required, but weak bankruptcy law could unnerve investors

contract_Getty-web.jpg
Contractual clause: China’s biggest banks may be permitted to issue new bail-in debt

China’s biggest banks may be permitted to issue new bail-in debt by inserting a contractual clause in the offer documents, allowing them to start building their buffers faster than originally expected.

Chinese regulators have already begun to consult with the largest banks on the options available for defining the total loss absorbing capacity (TLAC) framework, and in January they issued a letter promising to look at ways to broaden the number of domestic investors who would be attracted to

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

If you already have an account, please sign in here.

Register

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: