On Jan. 3, 2025, TAI FSC, TAI Justice revised implementation date of the above rule.
Point 1 of the above interpretive rule, re 150% risk weight, will be effective from Jan. 1, 2025, while point 2 re 12% capital accrual rate will be effective Jul. 1, 2025.
On Jan. 9, TAI FSC interpreted rule re timeline for capital requirement.
TAI FSC issued order for interpretive rule regarding implementation timeline for capital requirement of bank's total loss absorbing capacity liability instruments investments.
Follows TAI FSC Jan. 2022 issued order re timeline on TLAC investment, see #126539.
Summary
For banks accounting for these debt instruments in their banking book, a risk weight of 150% should be applied when calculating capital based on credit risk standards.
For banks accounting for these debt instruments, a capital charge rate of 12% shall be applied when calculating interest rate risk separately based on market risk standards.
The implementation of these amended calculations is to begin on Jan. 1, 2025.
Effectiveness
The order is effective immediately.
Jan. 2025 Amended Timeline
On Jan. 3, 2025, TAI FSC, TAI Justice revised implementation date of the above rule.
Point 1 of the above interpretive rule, re 150% risk weight, will be effective from Jan. 1, 2025, while point 2 re 12% capital accrual rate will be effective Jul. 1, 2025.
