Global bank groups could lower loss cushion and yet improve stability, FSB chair says

3 October 2019 9:08pm
Global banking groups could cut the levels of bail-in debt and equity they have to hold to cushion taxpayers from default and make the economy more stable into the bargain, the head of the Financial Stability Board has said.

The effectiveness of the financial system could be improved by a global agreement to allow lower levels of total loss-absorbing capacity, or TLAC, to be distributed around the units of a banking group, Randal Quarles told an audience in Brussels.