EBA publishes list of Common Equity Tier 1 (CET1) capital instruments

28 May 2014

The European Banking Authority (EBA) published today a list of capital instruments across the EU that national supervisory authorities have classified as Common Equity Tier 1. This list, which was compiled in accordance with Article 26 of the Capital Requirements Regulation (CRR), is based on the information received from the 28 national competent authorities across the EU and includes all the CET1 instruments issued by institutions and evaluated as compliant by the national supervisory authorities. The list will be maintained and updated on a regular basis.

The list published today by the EBA gives for the first time an exhaustive overview of the CET1 capital instruments available in EU Member States. It has been compiled on the basis of the information received as of 28 June 2013, so as to have a clear cut reference date for those instruments issued before the entry into force of the CRR. At this stage, the EBA did not perform any monitoring or analysis of the instruments listed but it is now starting its monitoring duty and assessing some instruments, in particular those issued after the entry into force of the CRR.

The EBA is mandated to constantly review and monitor the quality of own funds instruments issued by institutions across the Union. Updates to this initial list will be issued on a regular basis.

The information provided in this list is consistent with the information to be reported according to the Implementing Technical Standards (ITS) on disclosure for own funds. In particular, the list includes the following information:

  • Name of the instrument, in English and in the national language;
  • Governing law of the instrument;
  • Whether the instrument can be issued in addition to other Common Equity Tier 1 instruments;
  • Instrument with voting or non-voting rights;
  • Whether the instrument is a grandfathered state aid instrument;
  • Whether the instrument is a grandfathered non state aid instrument;
  • Whether the instrument is fully eligible under Article 28 or Article 29 of the CRR.

The EBA publishes this list in line with the legal obligations set out in Article 26 of the CRR. The EBA, in the monitoring phase and under the provisions of Article 80, will have a say on the compliance of these instruments with the eligibility criteria laid down in the CRR and notify the European Commission, if needed.

This list does not take into account the provisions on multiple dividends and preferential distributions laid down in the EBA final draft Regulatory Technical Standards (RTS) on own funds (part IV), as these have not yet been adopted by the European Commission. The final adoption of these RTS may affect the ultimate eligibility of some of the instruments as CET1. Finally, a series of caveats that must be taken into account when reading the list was also published on the EBA website today.