Group 1 - The core viewpoint of the news is that Bank of Communications has successfully issued its first total loss-absorbing capacity (TLAC) non-capital bond in 2025, totaling RMB 40 billion, to enhance its loss-absorbing capacity [1] - The bond issuance consists of two types: a 4-year fixed-rate bond of RMB 34 billion with a coupon rate of 1.79% and a 6-year fixed-rate bond of RMB 6 billion with a coupon rate of 1.88% [1] - The funds raised from this bond issuance will be used to improve the bank's total loss-absorbing capacity, which is crucial for global systemically important banks during resolution phases [1] Group 2 - The TLAC management framework was established by the People's Bank of China, the former Banking and Insurance Regulatory Commission, and the Ministry of Finance to regulate global systemically important banks in China [2] - The framework sets regulatory requirements for risk-weighted ratios and leverage ratios, with a phased approach to compliance, requiring major state-owned banks to meet the first phase standards by early 2025 [2] - Bank of Communications, as the fifth global systemically important bank in China, is required to meet TLAC standards by 2027 [2] Group 3 - Experts indicate that achieving TLAC compliance among the five global systemically important banks will enhance their risk resilience and operational stability, reducing moral hazard and potential impacts on financial stability [3] - The issuance of TLAC non-capital bonds by these banks is seen as a cost-effective way to meet regulatory requirements while improving their capital strength and risk management capabilities [3] - The Bank of Communications aims to leverage this bond issuance to fulfill its regulatory obligations and enhance its international competitiveness while supporting high-quality economic development [3]