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20 July 2018

EBA updates on monitoring of CET1 capital instruments


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This list is accompanied by an updated CET1 Report, which includes information on the underlying objectives of the monitoring as well as on the consequences of including or excluding instruments in or from the CET1 list. The EBA's monitoring of capital instruments contributes to the enhancement of the quality of institutions' capital across the EU.


Since the first publication of the list on 28 May 2014, the EBA has included 13 new forms of instruments issued after the entry into force of the Capital Requirements Regulation (CRR) and assessed their terms and conditions against the regulatory provisions with the aim of identifying any discrepancy with the eligibility criteria.

In cooperation with competent authorities, the EBA is also conducting a review of some pre-CRR instruments. In several cases, the EBA requested amendments to the terms and conditions of the instruments, mainly relating to the eligibility criteria flexibility of payments and permanence.

The CET1 Report includes some background information on the monitoring work done to establish the CET1 list. Its aim is to provide external stakeholders with further guidance on the content and objectives of the CET1 list. The main results of the monitoring and assessment of CET1 instruments are summarised in a ‘lessons learnt' section.

This section highlights areas where the EBA believed it was necessary to amend the terms and conditions of the instruments or the national laws of a given jurisdiction or the by-laws/statutes of institutions to make a given form of instrument eligible as CET1 capital.

Press release

Report

Updated list



© EBA


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