Bail-in bond sales catapult BMO towards TLAC target

The Bank of Montreal (BMO) has issued C$13 billion ($9.8 billion) of bail-in debt year-to-date in a bid to meet its total loss-absorbing capacity (TLAC) requirement ahead of a 2021 deadline.

Total TLAC, made up of eligible regulatory capital and unsecured debt that can be written off in a solvency crisis, hit C$60.7 billion at end-July, up 9.6% on end-April and 33.5% on end-January.

The increase has been achieved largely through the sale of TLAC-eligible debt instruments. As of end-July, these