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The Total Loss-absorbing Capacity (TLAC) Standard applies to firms that have been designated as global systemically important banks (G-SIBs) by the FSB. All G-SIB are required to meet a new requirement for Minimum External TLAC alongside minimum regulatory capital requirements set out in the Basel III framework. The Minimum TLAC requirement will be set in accordance with this term sheet set out in the FSB standard. The term sheet sets out criteria for the eligibility of instruments and liabilities to count toward the Minimum TLAC requirement. In principle, to be eligible to meet Minimum TLAC requirements instruments should be stable, long-term claims that are not repayable on demand or at short notice. The TLAC standard also requires disclosure of information on the position of TLAC within the hierarchy of liabilities so that there is as much clarity as possible ex ante about how losses are absorbed and recapitalisation is effected in the resolution of cross-border groups. The subordination of TLAC-eligible instruments to operational liabilities should help to ensure that there is increased certainty over the order in which liabilities absorb losses in resolution. The calibration and composition of firm-specific TLAC requirements should be subject to review in the FSB resolvability Assessment Process (RAP). In particular, the RAP should assess the extent to which the calibration and composition of firm-specific TLAC requirements, including internal TLAC arrangements, transparency in the order of loss absorption, and the legal robustness of subordination of TLAC to operational liabilities in insolvency and resolution, promote confidence amongst home and host authorities, creditors and other stakeholders that effective resolution arrangements are in place for all G-SIBs.