BaFin updated its administrative practice for the classification of capital instruments as Common Equity Tier 1, or CET 1, instruments, in accordance with Article 26(3) of Capital Requirements Regulation (CRR). Under Article 26(3) of CRR, competent authorities shall evaluate whether issuances of Common Equity Tier 1 instruments meet the criteria set out in Article 28 or, where applicable, Article 29. With respect to issuances after June 28, 2013, institutions shall classify capital instruments as Common Equity Tier 1 instruments only after permission is granted by the competent authorities, which may consult EBA.
In addition to the application procedure referred to in the first subparagraph of Article 26 (3) of CRR, institutions now have the possibility of notifying subsequent issues in accordance with the second subparagraph of Article 26 (3) CRR. The condition is that the institution has already been granted a license in accordance with the first subparagraph of Article 26 (3) of the CRR, which is no more than three years old and the instrument issued for capital increase is the same type of instrument. BaFin published a letter that sets out the documents to be submitted and declarations to be made in this regard. As specified in CRR, EBA also establishes, maintains, and publishes a list of all the forms of capital instruments in each member state that qualify as Common Equity Tier 1 instruments.
Related Links (in German)
Keywords: Europe, Germany, Banking, CRR, CET 1, Capital Requirements, Basel III, Regulatory Capital, BaFin
Previous ArticleCSSF Amends Circular on Supervisory Reporting Requirements
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.
The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.
The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.
The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.
The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.
The Central Bank of Egypt (CBE) published a circular with instructions on emergency liquidity assistance to banks that are unable to meet their liquidity requirements.
The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.