Loss absorbency is a key component of the evolving resolution framework. Europe has arguably taken the lead on the United States in this area, applying a version of the FSB’s standards for total loss absorbing capacity (TLAC) beyond global systemically important banks (G-SIBs) but also for less systemic institutions. In the United States, no TLAC-type requirement is applied for non-GSIBs. Therefore, most US banks – including those failing in the 2023 crisis – had no specific obligation to…
Like many other countries, in France the use of AI is largely encouraged by the regulators who themselves are using it to improve their supervision of firms. With the introduction of EU-wide measures via the AI Act, firms, including those in the US operating in the EU, will need to think about not only their financial services regulatory obligations but also specific AI controls. Whether these AI controls stifle innovation remains to be seen, but in one sense they do provide a framework that…
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Loss absorbency is a key component of the evolving resolution framework. Europe has arguably taken the lead on the United States in this area, applying a version of the FSB’s standards for total loss absorbing capacity (TLAC) beyond global systemically important banks (G-SIBs) but also for less systemic institutions. In the United States, no TLAC-type requirement is applied for non-GSIBs. Therefore, most US banks – including those failing in the 2023 crisis – had no specific obligation to…
Like many other countries, in France the use of AI is largely encouraged by the regulators who themselves are using it to improve their supervision of firms. With the introduction of EU-wide measures via the AI Act, firms, including those in the US operating in the EU, will need to think about not only their financial services regulatory obligations but also specific AI controls. Whether these AI controls stifle innovation remains to be seen, but in one sense they do provide a framework that…