US banks await Fed response on TLAC

摘要

US banks are awaiting the federal reserve's take on to total loss-absorbing capital - or TLAC - now that the financial stability board has closed comment on its rule proposal and is moving towards a quantitative impact study. Bankers expect the central bank and regulator to press ahead with the release of its own TLAC proposals in the next few months, before the FSB makes any tweaks to final results after taking in industry comments. Many US banks are concerned that the level of loss-absorbing capital they will be expected to hold could increase relative to the FSB proposal. That's not unreasonable considering the Fed has consistently raised the bar on US banks as it interprets global macro prudential regulations.