Regulatory Alerts2018-04-30
Total Loss Absorbing Capacity (TLAC) Guideline
The Office of the Superintendent of Financial Institutions establishes minimum Total Loss Absorbing Capacity requirements for domestic systemically important banks to ensure orderly resolution and financial stability. The guideline mandates two primary standards, a risk-based TLAC ratio and a TLAC leverage ratio, calculated using defined capital measures and exposure metrics. It details eligibility criteria for Tier 1 and Tier 2 capital alongside other TLAC instruments, specifies calculation adjustments, and sets phased implementation starting in fiscal Q1 2022.
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