The Basel Committee on Banking Supervision introduced the rules governing capital requirements on eligible debt instruments issued by Global Systemically Important Banks for TLAC instruments in October 2016. The FSC assessed and reviewed related practices of other countries for preparation of such amendments to domestic regulations governing capital requirements for investment by domestic banks in financial related enterprises to allow their step-by-step compliance with international standards and improve capital quality and risk bearing capacity of domestic banks.
The timeframe and directions of new capital requirements for capital instruments for investments by banks in financial related enterprises and TLAC debt instruments are as follows: 
1.The investments by domestic banks in capital instruments of financial related enterprises and TLAC debt instruments will be divided into two categories, important investments (including subsidiaries) and non-important investments, which are determined by the threshold of 10% shareholding, and applied to the methods of “cross-threshold exclusion” or “applicable capital exclusion”. The investments that exceed 10% shareholding threshold shall be excluded from the calculation of a bank’s regulatory capital. And the investments under the 10% shareholding threshold shall be included in the calculation of risk weighted assets and applied to the regulatory weighting.
2.As the introduction of capital requirements for TLAC debt instruments and non-important investments in other regulatory capital instruments will not have significant impact on banks in terms of their compliance with capital requirements, the new capital requirements will take effect on January 1, 2020; considering that the aforementioned capital requirements for important investments will have significant impact, they will take effect on January 1, 2022 after a buffer period of 3 years.