The FSB has finalized proposed internal-TLAC standards that complete the total loss-absorbing capacity (TLAC) regime global regulators finalized in 2015. Internal TLAC is designed to ensure both home and host authorities of cross-border banks that operations under their purview can be resolved in an orderly fashion without harm to the broader host financial system or macroeconomy. Internal TLAC is also designed to limit the desire of host authorities to ring-fence operations within their borders to ensure resolvability.
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