G20 seeks progress in regulating "too big to fail" banks

SEOUL, Nov 12 (BestGrowthStock) – Leaders of the Group of 20 leading
economies said on Friday that they had encouraged further
progress on looking at ways “too big to fail” banks could boost
their loss-absorbing capacity.

The Financial Stability Board is examining ways to boost the
loss absorbency of “systemically important financial
institutions”, or SIFIs.

Options on the table include capital surcharges, convertible
bonds and “bail in debt”. However, it is known that a number of
countries — notably France and Japan — are opposed to capital
surcharges and would prefer alternative measures.

“We encourage further progress on the feasibility of
contingent capital and other instruments,” the communique said.

The G20 also said that globally interconnected SIFIs — as
opposed to national SIFIs — should be subject to a sustained
process of “mandatory international recovery and resolution
planning”.
(Reporting by Rachel Armstrong; Editing by Nick Macfie)

G20 seeks progress in regulating "too big to fail" banks