Featured Product

    ECB Amends Annexes to Guide on Qualification of Capital Instruments

    September 30, 2020

    ECB published a letter on amendments to the Annexes to public guidance on the review of qualification of capital instruments as additional tier 1 and tier 2 instruments. The Annexes to the public guidance include templates on the main features of the instruments and on the self-assessment to be performed by the entity on the eligibility conditions. The templates are being updated to reflect the eligibility criteria newly introduced in the revised Capital Requirements Regulation or CRR 2 (2019/876). CRR 2 amended several provisions concerning the eligibility conditions that capital instruments must fulfil to be classified as additional tier 1 or tier 2 instruments, pursuant to Articles 52 and 63, respectively.

    For each of the items mentioned in Annex 1 to the letter, the entity should provide the relevant information that should be based on the applicable provisions contained in the agreement governing the capital instrument or any other relevant document. Entities must review and assess each capital instrument against the requirements for own funds set out in the relevant provisions of the CRR and the regulatory technical standards on own funds, taking into consideration the relevant EBA questions and answers and the EBA report on the monitoring of additional tier 1 issuances. An entity must provide all the relevant information to confirm that the conditions have been met. It must also copy or refer to the applicable provisions in the agreement governing the capital instrument and any other relevant documents and refer to the applicable EBA questions and answers that have been taken into consideration. Annex 2 to the letter contains the standard self-assessment templates on eligibility conditions of the additional tier 1 and tier 2 capital instruments.

     

    Related Link: Letter (PDF)

     

    Keywords: Europe, EU, Banking, Reporting, Regulatory Capital, CRR2, Additional Tier 1, Additional Tier 2, Basel, ECB

    Featured Experts
    Related Articles
    News

    BIS Paper Outlines Vision for Future Financial System

    In a recent paper, the General Manager of Bank for International Settlements (BIS) and the Indian entrepreneur (Infosys co-founder) Nandan Nilekani have laid out a vision for the Finternet, which is proposed to be a network of multiple financial ecosystems, much like the internet.

    April 29, 2024 WebPage Regulatory News
    News

    NGFS Outlines Options for Supervisory Review of Transition Plans

    The Network for Greening the Financial System (NGFS) recently published three reports on the use of transition plans to boost sustainable finance and manage climate-related financial risks.

    April 29, 2024 WebPage Regulatory News
    News

    BCBS Issues Discussion Paper on Climate Scenario Analysis

    The Basel Committee on Banking Supervision (BCBS) issued a discussion paper on the use of climate scenario analysis to strengthen the management and supervision of climate-related financial risks.

    April 29, 2024 WebPage Regulatory News
    News

    OSFI Issues Phase2 Consultation on Climate Scenario Exercise for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) recently announced a consultation on the second phase of the Standardized Climate Scenario Exercise (SCSE) for banks and other financial institutions it regulates in Canada.

    April 25, 2024 WebPage Regulatory News
    News

    CFIT to Chair Open Finance Taskforce Announced by UK Government

    The UK government announced the formation of an industry-led Open Finance Taskforce, chaired by the Center for Finance, Innovation, and Technology (CFIT).

    April 25, 2024 WebPage Regulatory News
    News

    BIS and Central Banks Experiment with GenAI to Assess Climate Risks

    A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe

    March 20, 2024 WebPage Regulatory News
    News

    Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures

    Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.

    March 18, 2024 WebPage Regulatory News
    News

    Singapore to Mandate Climate Disclosures from FY2025

    Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies

    March 18, 2024 WebPage Regulatory News
    News

    SEC Finalizes Climate-Related Disclosures Rule

    The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.

    March 07, 2024 WebPage Regulatory News
    News

    EBA Proposes Standards Related to Standardized Credit Risk Approach

    The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU

    March 05, 2024 WebPage Regulatory News
    RESULTS 1 - 10 OF 8962