FSB issues TLAC rules to tackle banks seen as 'too big to fail'

Banking behemoths, led by HSBC Holdings and JPMorgan Chase & Co, now know the cost they will have to shoulder so the global financial system does not have another Lehman moment.

The Financial Stability Board, created by the G20 nations in the aftermath of the crisis, published its plan for tackling banks seen as too big to fail.

The most systemically important lenders must have total loss-absorbing capacity equivalent to at least 16% of risk-weighted assets in 2019, rising to 18% in 2022, the FSB said yesterday.