The FSB published the final standard on November 9, 2015. It sets a minimum for each resolution entity in addition to the Basel III minimum capital requirements: 16% of risk-weighted assets (from January 1, 2019) and 18% (from January 1, 2022), and 6% of the Basel III leverage ratio denominator (2019) and 6.75% (2022).
Consider a hypothetical example in which an 18% minimum applies to a group with risk-weighted assets of 50 trillion yen. TLAC must be at least 9 trillion yen. If a 6.75% minimum applies to a leverage ratio denominator of 150 trillion yen, it must be at least 10.125 trillion yen. Both must be met, so the larger amount is the binding one.
Insured deposits and liabilities arising from derivatives, among others, cannot count toward TLAC.