G-Sib pair has largest TLAC shortfall since 2018
Basel monitoring report estimates €30bn below their fully loaded requirements
Two global systemically important banks (G-Sibs) ended 2023 below their fully loaded requirements for total loss-absorbing capacity (TLAC), figures from the latest Basel III monitoring report show. The gap was the largest amount in five years.
The unnamed pair’s combined shortfalls totalled €30.1 billion ($33 billion) under the final Basel III framework, which will be fully phased in by 2028. Under the current rules, the two systemic lenders are €26 billion below the regulatory minimum.
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