Asian market participants have been second-guessing
they types of capital the region’s banks will
raise to comply with the Financial Stability
Board’s (FSB) upcoming total loss absorbing
capital (TLAC) requirement.
There are six global systemically-important banks
(G-Sibs) in Asia – three in Japan and three in China.
In the FSB’s TLAC proposal, it carved out banks
from emerging markets, so Chinese banks would not immediately
However the form of bail-in-able debt used to satisfy TLAC
in Asia is likely to be different from...