On Monday, February 2, the Systemic Risk Council wrote a letter to the Financial Stability Board (FSB) about the consultative document recently issued by the FSB on the adequacy of the total loss-absorbing capacity (TLAC) of global systemically important banks (G-SIBs) in resolution.
The letter states:
“The Council has consistently supported requirements for G-SIBs to maintain robust levels of high-quality capital, whether in the United States or overseas. We have also supported efforts to strengthen the mechanisms available for the resolution or orderly liquidation of large, complex financial institutions should the need arise, pursuant to Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act in the United States and comparable resolution regimes elsewhere. We commend the FSB for its attention to addressing the causes of financial instability and developing effective methods to combat the perception that certain large, complex financial institutions are ‘too big to fail.'”
Read the full letter below: