BaFin published a new general directive (or general order) with the intent to regulate the extent to which newly issued shares in cooperative banks can be classified as instruments of common equity tier 1, or CET 1, capital. The directive also specifies the conditions under which the repayment of business credit due to canceled cooperative shares must be approved in advance. The directive only affects cooperative banks that are not subject to the direct supervision of ECB. The general directive is valid until the end of 2020. The previous order on common equity tier 1 instruments at cooperative banks was limited until December 31, 2019.
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Keywords: Europe, Germany, Banking, CET 1, CRR2, Regulatory Capital, Cooperative Banks, Basel III, Less Significant Institutions, BaFin
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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.
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