Guiding Principles on the Internal Total Loss-Absorbing Capacity of G-SIBs (‘Internal TLAC’)

View the Standard

The FSB’s November 2015 standard on Total Loss-absorbing Capacity (TLAC) defines a minimum requirement for the instruments and liabilities that should be held by global systemically important banks (G-SIBs) and be readily available for bail-in within resolution. It also requires a certain amount of those loss-absorbing resources to be committed to subsidiaries or sub-groups that are located in host jurisdictions and deemed material for the resolution of the G-SIB as a whole (‘internal TLAC’).

These guiding FSB principles support the implementation of the internal TLAC requirement and provide guidance on the size and composition of the internal TLAC requirement, cooperation and coordination between home and host authorities and the trigger mechanism for internal TLAC.