On November 2015, the Financial Stability Board (Fsb) issued the Total Loss Absorbing Capacity (Tlac) standard, which – starting from 2019 – has been applied to the Global Systemically Important Banks (G-Sibs). This paper aims at evaluating the Tlac adequacy of the Eurozone G-Sibs, in both qualitative and quantitative terms, and the relative degree of resilience. To this end, the research introduces a new indicator, i.e. the Implied Shock Tolerance (Ist), used to estimate the maximum level of the shock that could be absorbed by the concerned banks vis-à-vis their available financial resources. The proposed indicator would also have useful applications at operational level in supporting the calibration methodologies of the loss absorbing capacity.
