G-20 summit delivers agreement on TLAC
Leaders agree to press ahead with loss-absorbency plans
Leaders of the G-20 group of nations have endorsed proposals for a standard governing total loss-absorbing capacity (TLAC), in an effort to move closer to ending the problem of ‘too big to fail banks'.
The proposals, set out by the Financial Stability Board (FSB) on November 10, aim to allow global banks to be resolved without sending catastrophic shockwaves throughout the financial system.
Under the draft standard, banks would have to hold 16–20% of risk-weighted assets in the form of bail
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