TLAC rules no sweat for US regionals
Capital One and US Bancorp best placed to fund their balance sheets with long-term debt
An expansion of total loss absorbing capacity (TLAC) rules to US regional lenders, as suggested by some federal regulators in recent months, would find most of them in a good position to meet their bail-in debt requirements, a Risk Quantum analysis of 18 banks shows.
The TLAC standard designed by the Financial Stability Board (FSB) requires global systemically important banks (G-Sibs) – classified as Category I banks in the US – to hold minimum amounts of long-term debt (LTD) and other bail-in
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