Progress by the largest banks in implementing the total loss-absorbing capacity standard has been “steady and significant,” according to a review published this week by the Basel, Switzerland-based Financial Stability Board. TLAC is intended to aid global systemically important institutions in absorbing losses and achieve orderly resolution.
The review found that all relevant GSIBs are meeting or exceeding the target TLAC ratios. While the FSB noted that it “sees no need to modify the TLAC standard at this time,” it said that “further efforts are needed” to implement the standard fully.
