Source: Financial Times
On May 13, Bank of China The announcement said that with the approval of the State Administration of Financial Supervision and Administration on the Issuance of Non capital Debt Instruments with Total Loss Absorbing Capacity by Bank of China and the Decision of the People's Bank of China on Administrative Licensing, Bank of China will May 16th Issue 2024 total loss absorption capacity (TLAC) non capital bonds (Phase I) in the national inter-bank bond market. The basic issuing scale is RMB 30 billion yuan.
Previously, Industrial and Commercial Bank of China It also issued an announcement on May 11, announcing that May 15th The Bank issued non capital bonds (Phase I) with total loss absorption capacity in 2024, and the basic issuance scale was also 30 billion yuan.
In October 2021, the People's Bank of China, the former CBRC and the Ministry of Finance jointly issued the Management Measures on the Total Loss Absorption Capacity of Globally Systemically Important Banks, which clearly requires that the total external loss absorption capacity ratio of globally systemically important banks should be no less than 16% and 6% respectively from January 1, 2025, Not less than 18% and 6.75% respectively from January 1, 2028.
At present, a total of five banks in China have been included in the latest list of global systemically important banks released by the Financial Stability Commission, namely ICBC agricultural bank , Bank of China bank for economic construction and Bank of Communications 。
Industry experts said that, as globally systemically important banks, the five major banks of China Construction Communications between Industry and Agriculture, if they only rely on profits to supplement capital internally in the process of implementing TLAC requirements, they may limit the investment and growth of assets. Therefore, they should pay more attention to innovative design and issuance of total loss absorption tools achieve Regulatory requirements to maintain economic and financial stability.
TLAC non capital bonds are innovative bonds of global systemically important banks. They are financial bonds issued by global systemically important banks to meet the requirements of total loss absorption capacity, with loss absorption function, and not belonging to the capital of commercial banks.
"TLAC non capital bonds are issued to improve the ability of global systemically important banks to withstand risks when they encounter risks," Zeng Gang, director of Shanghai Finance and Development Laboratory, said in an interview with the Financial Times.
Since this year, the five major banks have successively released TLAC non capital bond issuance plans.
According to the relevant information disclosed by the five major banks, the proposed issuance scale of TLAC non capital bonds by the five banks of China Construction Communications Industry and Agriculture Co., Ltd. will not exceed 60 billion yuan, 50 billion yuan, 150 billion yuan, 50 billion yuan and 130 billion yuan respectively, with a total of no more than 440 billion yuan.
"TLAC non capital bonds, as additional reserves and debt instruments used to absorb risks when risks arise, help to improve the credit stability of large banks. ”Zeng Gang said that at the same time, it can also reduce the moral hazard of large banks, thus maintaining Economic and financial stability.
Massive information, accurate interpretation, all in Sina Finance APP
Editor in charge: Cao Ruitong
