On 3 July 2019, the Financial Stability Board (FSB) published a technical review of the implementation of the total loss-absorbing capacity (TLAC) standard for global systemically important banks (G-SIBs) in resolution.

The review finds that:

  • progress has been steady and significant in both the setting of external TLAC requirements by authorities and the issuance of TLAC by G-SIBs;
  • all relevant G-SIBs meet or exceed the TLAC target ratios of at least 16% of risk-weighted assets and 6% of the Basel III leverage ratio denominator;
  • as of 2018, most TLAC had been issued in USD (about 67%) and EUR (about 19%).

The FSB concludes that at present there is no need to modify the TLAC standard. However, as implementation is ongoing, further efforts are needed to implement the TLAC Standard fully and effectively and to determine the appropriate group-internal distribution of TLAC resources across home and host jurisdictions.