Australia’s big-four banks could triple their issuance of tier-two instruments to meet the local equivalent of a total loss-absorbing capacity (TLAC) regime, according to the Australian Prudential Regulation Authority (APRA). The Australian regulator proposed an updated capital-adequacy regime on 8 November, suggesting tier-two will carry most of the weight of a 4-5 per cent increase in total capital requirement for the majors.