Free Trial

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI BRIEF: AT1 Retains Priority Over Equity In Eurozone- ECB

(MNI) LONDON
(MNI) London

European banking authorities confirm AT1 assets hold preferred position to equity holdings in bank resolution.

Common equity instruments will remain the first to absorb losses in bank failures, eurozone banking authorities said on Monday, after Credit Suisse AT1 bond holders were wiped out in the deal to sell it to UBS.

"Common equity instruments are the first ones to absorb losses, and only after their full use would Additional Tier 1 be required to be written down. This approach has been consistently applied in past cases and will continue to guide the actions of the SRB and ECB banking supervision in crisis interventions," European Central Bank Banking Supervision, the Single Resolution Board and the European Banking Authority said in a joint statement.

Keep reading...Show less
148 words

To read the full story

Why Subscribe to

MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Common equity instruments will remain the first to absorb losses in bank failures, eurozone banking authorities said on Monday, after Credit Suisse AT1 bond holders were wiped out in the deal to sell it to UBS.

"Common equity instruments are the first ones to absorb losses, and only after their full use would Additional Tier 1 be required to be written down. This approach has been consistently applied in past cases and will continue to guide the actions of the SRB and ECB banking supervision in crisis interventions," European Central Bank Banking Supervision, the Single Resolution Board and the European Banking Authority said in a joint statement.

Keep reading...Show less