G-7 leaders stick to deadline for FSB too-big-to-fail bank fix

Leaders of the Group of Seven nations said they'll push ahead with reforms aimed at preventing government bailouts of big banks once impact assessments of the rules are completed. The Financial Stability Board's proposal on total loss absorbing capacity, or TLAC, would be used to "address the 'too-big-to-fail' problem on a global level," the leaders said in a joint statement on Monday following a meeting in Germany.

The FSB's proposal, made last year, would require the biggest banks to issue ordinary shares, subordinated debt and other loss-absorbing securities equivalent to as much as a fifth of their assets weighted for risk. Bank of England Governor Mark Carney, who heads the FSB, has ruled out sweeping changes to TLAC, saying in March that the final rules will be "very similar" to last year's draft. The regulations would take effect at the earliest in 2019.