The FSB wants the largest lenders to reach a total of 25.0% loss absorption rate, but hybrid instruments (CoCos or convertible bonds) and subordinated debt will also be taken into account.
In addition, the Basel Committee could announce a review of the methods of standard calculation of risk-weighted assets and greater restrictions on internal models. Its draft rules will be handed to the G-20 summit in Brisbane, Australia, next month.
The final goal is to ensure taxpayers are no longer to bear the burden when banks fail.
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