To ensure a systemically important bank holds sufficient bail-inable debt to support a controlled resolution, global regulators enforce strict structural metrics: Total Loss-Absorbing Capacity (TLAC) for global institutions and Minimum Requirement for Own Funds and Eligible Liabilities (MREL) within the European Union.
Reconciling TLAC Governance Requirements
  TLAC Operational Metric |   Minimum Regulatory Threshold   |   Systemic Target Focus Area
--------------------------+----------------------------------+---------------------------------------
  Risk-Weighted Metric    | 18.0% of Risk-Weighted Assets    | Loss absorption per portfolio risk
  Leverage-Based Metric   | 6.75% of Total Leverage Exposure  | Raw equity backstop; limits dilution

These metrics ensure that a bank maintains a designated layer of long-term debt securities that can be written down or converted into equity during a crisis, allowing the institution to be stabilized and recapitalized without disrupting the wider financial sector.
 
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