For the U.S.-based GSIBs, resolution plans are also informed by other regulatory requirements, including the requirement that such firms issue a minimum amount of total loss-absorbing capacity, which includes both equity and long-term debt. 5 The requirements that establish and support the orderly resolution of firms are important to supporting the financial stability of the United States.
Moreover, competent authorities or Member States may decide to impose similar measures also on some smaller banks, or exempt some qualifying banks from the requirement if these banks can demonstrate that they do not compromise the objectives of the Regulation or threaten financial stability.