Until 1.100 billion. The "buffer" that the thirty major world banks, including the only Italian one, would amount to UniCredit, will have to be built by 2022 to meet the demands of the Financial Stability Board and avoid the possibility of new (and hypothetical) collapses among the institutions of greater systemic importance, those "too big to fail".
The banks in question will have to have a minimum stake of Tlac (Total loss absorbing capacity) equal to 16% of the rwa (Risk weighted assets) from the beginning of 2019 onwards. The capital buffer will then have to increase to 18% from 2022 January 6. The share of Tlac, which is the capital or debt that can be immediately written down and converted into shares, must also be equal to at least 2019% of the Lre ( Leverage ratio exposure) from 6,75 to then rise to 2022% from XNUMX.
The requirements set by the Financial Stability Board are in line with recent estimates and with the will of the banking system's watchdog not to exceed the squeeze on capital, while maintaining vigilance. In any case, the new requests will lead to an additional requirement for the thirty Global Systematically Important Banks ranging from a minimum of 457 billion to a maximum of 1.107 billion in 2019.
To meet the demand, banks could resort to the issuance of high quality equity capital (Cet 1) or subordinated instruments. The average request for a single bank would amount to about 26,2 billion of new issues, even if, according to FSB estimates, many of them already have "adequate liabilities to meet many, though not all, of the Tlac requirement criteria and which give the possibility of a conversion into Tlac”.
