European banks warming to AT1 – National Bank of Denmark study
Lenders that rely on additional tier 1 capital are less capitalised, says new research
European banks are increasingly using Additional Tier 1 (AT1) capital to meet regulatory requirements, research from the National Bank of Denmark shows.
The study says that large banks with diverse business models and banks with higher credit ratings hold more AT1 capital. However, the authors – Stine Louise von Rüden and Ianna Yordanova – add that the relationship between a bank’s credit rating and its capital structure is not necessarily straightforward.
Under the Basel capital requirements, AT1
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com test test test
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com test test test
More on Micro-prudential
ECB looks to simplify bank regs, supervision and reporting
Recommendations include merged buffers, lesser reporting burdens and an easier life for smaller banks
BoE lowers capital requirements for banks
Governor says move reflects sector’s evolution as institution publishes latest fin stab report
BoT seeks more oversight of gold trade to prevent baht volatility
Vitai says bank is working to boost supervision of institutions and dealers involved in precious metal
ECB’s Elderson welcomes debate on simplification
Vice-chair of supervisory board points to expanding proportionality and cutting capital stacks
ECB fines Spanish bank for not complying with climate rules
Supervisor imposes first-ever financial penalty over environmental prudential requirements
ECB does not have rule-making power – Elderson
Binding decisions are based on existing regulations and not supervisory expectations, board member says
San Marino blocks bank sale, looks to quell instability
Central bank says financial system is “solid and resilient”
BoE’s Woods rejects call to exempt gilts from leverage rule
Bank capital regime must account for sovereign bonds’ interest rate risks, PRA chief says