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The Basel Committee's TLAC Quantitative Impact Study (QIS) Report analyses the Total Loss Absorbing Capacity (TLAC) levels and shortfalls at global systemically important banks (G-SIBs) based on the Financial Stability Board’s(FSB) November 2014 consultative version of the TLAC term sheet.
The quantitative impact study is a critical component of the impact analysis of the TLAC regime. In particular, it provides the main data set that is the basis of the analysis Assessing the economic costs and benefits of TLAC implementation, which was led by staff of the Bank for International Settlements.
The TLAC quantitative impact study also examines the extent that G-SIBs and non-G-SIBs currently invest in TLAC instruments. This has helped to inform the second of today's Basel Committee publications related to TLAC. The TLAC Holdings consultative document sets out the proposed regulatory capital treatment of TLAC instruments, which are held by banks (both G-SIBs and non-G-SIBs). This proposed prudential treatment seeks to limit contagion within the financial system if a G-SIB were to enter resolution.
Comments on the proposals should be sent by Friday 12 February 2016.