#econchart – The European TLAC imbalance


Here’s a closer look at the current buffers (TLAC) of the top European banks, with the “Global Systematically Important Banks” (G-SIB) highlighted. If the new TLAC reaches 20% more than half of the systemically important banks in Europe will be affected, notably BNP Paribas which would also be one of the only ones affected if it reaches 16%. This also begs the question, why is the TLAC of these G-SIB banks lower in the first place? Does this show that the FSB will be making the right decision and bringing them up to peer standard.


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