The FSB, chaired by Bank of England governor Mark Carney, estimates this could mean banks raising up to €1.1tr of new debt. However, in November Carney dismissed suggestions TLAC was part of a new package of punishing regulation dubbed ‘Basel IV’. “There is no Basel IV,” he said. “What we’re doing is ironing out issues that have been identified over time in terms of the application of Basel III.”
Banks have entered the final furlong of post-crisis capital building. But some have plenty of ground to make up.
