It will allow for the orderly resolution of those banks without disrupting the financial system and while protecting taxpayers from having to foot the bill. For the TLAC-concept, I wish to signal my strong support. To achieve these worthy goals, I suggest agreeing upon a figure at the upper end of the range of 16% – 20% proposed by the FSB.
However, reaching an agreement on TLAC is not the finish line of the regulatory agenda. The next months need to be used for in-depth public consultation as well as an impact study of the new rules. I hope that this study will lend support to a figure at the upper end of the proposed range.