New draft rules for big banks approved by global regulators

A draft agreement for new rules that will require almost all of the 30 big banks to hold sufficient equity capital and bonds to prevent taxpayers having to bail them out has been published.

The terms, which have been agreed by regulators around the world, form what is known as a total loss absorbency capacity (TLAC).

In a statement released late Friday, global regulator the Financial Services Board (FSB) said: "At today's meeting, FSB members discussed the TLAC impact assessments, and agreed the draft final principles and the updated term sheet."

No details of the agreement were given.

The FSB also said it has given approval of an initial draft of a similar agreement for large insurers. Known as the Higher Loss Absorbency standard, major insurers will have to add in an additional level of protection to their basic capital requirements.