Learn how TLAC and MREL address the problem of banks being "too big to fail" in the new module 2 in Series 22 Managing Banks

May 30, 2017

TLAC and MREL address the problem of banks being "too big to fail." The core principle of TLAC and MREL is that the cost of bank failures must be borne by shareholders and creditors and not by taxpayers.

The new initiative defines rules where debt instruments are eligible to absorb losses and debt instruments can be converted to new equity (bail-in) to recapitalize banks.