EBA updates its CET1 list

08 September 2016

The European Banking Authority (EBA) published today its third updated list of capital instruments that Competent Supervisory Authorities (CAs) across the European Union (EU) have classified as Common Equity Tier 1 (CET1). Since the publication of the previous update in October 2015, some new CET1 instruments have been assessed and evaluated as compliant with the Capital Requirements Regulation (CRR). The list will be maintained and updated on a regular basis.
 
Since the publication of the second updated list of CET1 capital instruments on 21 October 2015, the EBA has been monitoring and assessing the capital instruments issued after the entry into force of the CRR. In this third update, one new CET1 instrument has been assessed and evaluated as compliant with the CRR, two instruments have been deleted, as their form is no longer in existence, and two new state aid instruments issued under Article 31 of the CRR have been included.
 
For ease of reference, new rows have been added to flag the new instruments and strikethroughs have been applied to highlight the deleted instruments.
 
The information provided in the 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.
For the purpose of correctly understanding this list, the EBA recommends taking into account the list of caveats described at the beginning of the list.
 

Legal basis and background

Article 26 of the CRR mandates the EBA to update the CET1 list on a continuous basis. In particular, in line with the CRR legal obligations, the EBA shall monitor the quality of new instruments issued by institutions across the EU and assess their compliance with the eligibility criteria laid down in the CRR.