The Great Bank Capital Debate rumbles on. IFR's latest event on this evolving topic was held as the TLAC and MREL initiatives wend their way closer to final versions at the same time as banks are - to the extent the rules have been finalised or where the direction of travel is otherwise clear - fine-tuning resolution plans, working towards assumed leverage ratio minimums, and dealing with funding, liquidity and a host of other issues in a world that has become increasingly convoluted. The changes are far from trivial; involving legal structure changes in some cases as banks grapple with HoldCo/OpCo issues and try to engage in single versus multiple point-of-entry optimisation for bail-in, and home country regulators try to get their heads around the embedded complexities of cross-border issues arising from the international nature of banking, which is leading to discussions around subsidiarisation, trapped capital, downstreaming, internal TLAC and group capital management.
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