Regulatory Alerts2016-11-21
TLAC Holding Standards
The Saudi Arabian Monetary Agency issued the TLAC Holding Standards to implement international loss-absorption requirements for Global Systemically Important Banks and domestic financial institutions. The directive mandates that banks deduct qualifying TLAC instrument holdings from their Tier 2 regulatory capital, applying a standard ten percent threshold with an optional five percent gross long basis allowance and specific rules for pari passu instruments. These prudential capital treatment rules apply to both G-SIBs and non-G-SIBs, requiring adjusted regulatory capital buffer calculations, and take effect on 1 January 2019.
Share