August TLAC bonds are "renewed" by large state-owned commercial banks to strengthen risk prevention measures.

Recently, state-owned major banks have successively issued total loss absorption capacity non-capital bonds. After Agricultural Bank issued 300 billion TLAC bonds in June 2025, it issued another 200 billion TLAC bonds. Together with the TLAC bonds issued by previous banks like Bank of China and China Construction Bank, the total issuance size of TLAC bonds by the three major banks may reach 170 billion yuan, attracting a diverse range of investors to participate and oversubscribe. TLAC refers to the sum of capital and debt instruments that can absorb losses through writedown or conversion when global systemically important banks enter into risk disposal. TLAC bonds are financial bonds issued by global systemically important banks to meet the requirements of total loss absorption capacity, with the function of absorbing losses and not belonging to commercial bank capital. "The main purpose of issuing TLAC bonds is to enhance the risk compensation and disposal ability of systemic banks and maintain financial system stability," a senior researcher at a bank's financial market department told reporters. Industry insiders believe that state-owned major banks should take the opportunity to supplement the total loss absorption capacity, enhance capital strength, loss absorption capacity, operational level, and risk control capabilities, in order to better serve the real economy.