The attempts to broaden non-bank funding sources in Europe via improved and safer securitisation practices, as well as capital markets union, should reduce the negative consequences of bank deleveraging now as well as in the future. Total Loss Absorption Capacity Let me begin with the TLAC initiative targeting the most systemically important banks.
6 Gopinath, G., Kalemli-Özcan, S., Karabarbounis, L. and Villegas-Sanchez, C. (2017), “Capital Allocation and  Productivity in South Europe”, Quarterly Journal of Economics, Vol. 132, No 4, pp. 1915–1967. 3/3  BIS central bankers' speeches