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Foreword (partial) "At the St. Petersburg Summit in 2013, the G20 Leaders called on the Financial Stability Board (FSB), “in consultation with standard setting bodies, to assess and develop proposals by end-2014 on the adequacy of global systemically important financial institutions’ loss-absorbing capacity when they fail.” … The FSB has developed, in consultation with the Basel Committee on Banking Supervision (BCBS) (i) a set of principles that elaborate on the premise set out in the September 2013 report on Progress and Next Steps Towards Ending “Too-Big-To-Fail” (TBTF) that there must be sufficient loss-absorbing and recapitalisation capacity available in resolution to implement an orderly resolution that minimises impacts on financial stability, ensures the continuity of critical functions, and avoids exposing public funds to loss; and (ii) a term sheet that implements these principles in the form of an internationally agreed standard on the adequacy of total loss absorbing capacity for global systemically important banks (G-SIBs). The term sheet should be read in conjunction with the principles. It defines a requirement for instruments and liabilities that should be readily available for bail-in within resolution at G-SIBs, but does not limit authorities’ powers under the applicable resolution law to expose any liability to loss through bail-in or the application of other resolution tools. …"

Additional Nematrian Commentary The term sheet makes clear that these requirements apply alongside minimum capital requirements set out in Basel III and apply to each individual resolution entity in isolation. A resolution entity may be a "parent company, an intermediate or ultimate holding company, or an operating subsidiary. A G-SIB may have one or more resolution entities."

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