Question ID:
Legal Act:
Directive 2014/59/EU (BRRD)
Write-down and conversion of capital instruments
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Not applicable
Disclose name of institution / entity:
Type of submitter:
Competent authority
Subject Matter:
Reference to point (b) in Article 60(2)

The final sentence in Article 60(2) refers to point (b). Is that reference correct or is it meant to refer to point (c) of the same Article?

Background on the question:

Article 60(2) final sentence refers to point (b). Is it meant to refer to point (c)?

Date of submission:
Final Answer:

The sentence refers to the case of partial write down of an Additional Tier 1 (AT1) instrument and it is meant to indicate that while the liability for the amount that has been written down is eliminated (as per Article 60(2)(b)), that does not prevent the conversion of the remaining amount into a Common Equity Tier 1 (CET1) instrument in accordance with paragraph 3.

The reference is therefore correct.


This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.

Answer prepared by:
Answer prepared by the European Commission because it is a matter of interpretation of Union law.
Note to Q&A:

Update 26.03.2021: This Q&A has not yet been reviewed by the European Commission in the light of the changes introduced to Directive 2014/59/EU (BRRD).

Update 02.12.2021: This Q&A has been archived as the issue it deals with has been clarified in Article 60 of Directive 2014/59/EU (BRRD).