Jin Rong Shi Bao·2025-07-11 02:51Core Points - China Bank has completed the issuance of the first phase of Total Loss-Absorbing Capacity (TLAC) non-capital bonds for 2025, following regulatory approval [1][3] - Agricultural Bank and Bank of Communications have also issued their respective TLAC bonds recently, indicating a trend among major banks to enhance their capital structures [3][5] - The issuance of TLAC bonds is aimed at meeting international regulatory requirements and improving the international competitiveness of China's Global Systemically Important Banks (G-SIBs) [6][7] Summary by Category Issuance Details - China Bank issued TLAC non-capital bonds worth 500 million RMB on July 10, 2023, after approval from regulatory authorities [3][5] - Agricultural Bank issued TLAC bonds worth 300 million RMB on June 30, 2023, and Bank of Communications completed its issuance on June 16, 2023 [3][5] - The approved issuance limits for the banks are 600 billion RMB for Industrial and Commercial Bank, 1800 billion RMB for Agricultural Bank, 1500 billion RMB for China Bank, and 3000 billion RMB for Bank of Communications [5] Regulatory Context - TLAC non-capital bonds are designed to help G-SIBs meet loss-absorption requirements, which are crucial for maintaining financial stability [5][6] - The first phase of TLAC compliance for four major banks is set for early 2025, while Bank of Communications has until 2027 to meet its requirements [5] Strategic Implications - The issuance of TLAC bonds is seen as an opportunity for banks to strengthen their capital base and enhance their operational capabilities [6][7] - Industry experts believe that the focus on TLAC compliance will lead to improved risk management and service to the real economy [7]