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Chinese banks challenged to fill half-trillion TLAC capital gap

The Big Four banks, long weaned off domestic depositors and friendly local investors to fund their lending, now have to toe the line globally

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In a Nov 24 report, Moody's says the shortfall among China's global systemically important banks, or G-SIBs, such as the Bank of China, will be US$553b. This is far more than the US$115b in TLAC needed for US banks and the US$201b for European banks.

Hong Kong

CHINA'S four largest lenders face starkly higher funding costs as a result of global rules designed to prevent a collapse of banks deemed too big to fail.

Having relied so far on domestic depositors and friendly local investors to fund their lending, the Big Four will...