Chinese G-Sibs load up on non-core capital ahead of TLAC introduction
Agricultural Bank of China boosts AT1 capital, while Bank of China drives Tier 2 growth
The five Chinese global systemically important banks (G-Sibs) increased their combined Additional Tier 1 and Tier 2 capital by a combined 167 billion yuan ($23.7 billion), as they gear up to meet their total loss-absorbing capacity (TLAC) requirements, due to kick in next year.
TLAC includes equity capital and subordinated bonds, such as AT1 and Tier 2 instruments, but must also have a layer of senior, non-preferred debt ranking below ineligible liabilities such as deposits.
Agricultural Bank of
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