FSB Rules Could Require 25% Loss Buffer for Big Banks
Bloomberg reported the world’s largest banks will have to build up their loss-absorbing liability buffers to see them through a crisis, as regulators tackle too-big-to-fail lenders six years after the collapse of Lehman Brothers Holdings.
Bloomberg said the Financial Stability Board rules would apply to the FSB’s register of global systemically important banks, which contains 30 banks, with HSBC Holdings and JPMorgan Chase identified as the most significant.
Bloomberg notes the biggest banks may be required to have total loss absorbing capacity equivalent to as much as a quarter of their assets weighted for risk, with national regulators able to impose still tougher standards.
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