China's big banks have longest road to meet loss-absorbing needs

London

CHINA'S giant banks got a nine-year breather to issue the securities they need to meet standards for loss absorbency laid down by the Financial Stability Board (FSB), an acknowledgment of the challenge this implies for the largely deposit-funded lenders.

The country's four lenders on the FSB's list of the world's too-big-to-fail banks have until 2025 to reach total loss-absorbing capacity (TLAC) of 16 per cent of risk-weighted assets, six more years than their peers from developed markets. The ratio rises to 18 per cent in 2028.