This report does not constitute a rating action. China's megabanks will receive solid government support, when needed, even as they increase bail-in capital buffers under regulatory guidelines. This enhanced capital cushion will likely give them more flexibility to fulfill their critical roles to support national priorities. After adopting total loss-absorbing capacity (TLAC) requirements, China's four global systemically banks (G-SIBs) have raised their TLAC buffers to 20.5%-21.9% of risk-weighted assets (RWA) as of end-March 2025. Including the Deposit Insurance Fund (DIF) in the 2.5% RWA cap helped raise the banks' TLAC ratios above the 20% minimum requirement. This requirement includes capital surcharges. Chart 1 ICBC--Industrial and Commercial Bank of China Ltd. CCB--China Construction Bank Corporation. ABC--Agricultural Bank of China Limited. BOC--Bank
