EBA · 2013_40 Final Q&A

Treatment of non-step Tier 1 hybrids post grandfathering

Name: Treatment of non-step Tier 1 hybrids post grandfathering: EBA Q&A — EU Financial Regulatory Q&A
Creator: European Banking Authority
License: https://creativecommons.org/licenses/by/4.0/

Regulation: Regulation (EU) No 575/2013 (CRR)
Article: 486, 62
Topic: Own funds
Submitted by: Credit institution
Submitted: 2013-07-05
Answered: 2013-11-15
Answer provided by: ESAs (EBA, ESMA, EIOPA)

Browse ECB SSM Register → More Q&As on this regulation →

Question

This query concerns “non-innovative” (i.e. non step) hybrid Tier 1 instruments that fully qualified as original own funds which are now callable every quarter, which do not meet the requirements of Article 52 but are eligible for grandfathering under Article 484 of Regulation (EU) No. 575/2013 (CRR). Once they cease to be eligible (in part or in full) as AT1 due to the grandfathering limits, is the de-recognised amount eligible as Tier 2?"

Background

Capital planning

Answer

See QA 2013_31 .

Original source: European Banking Authority, Q&A ID 2013_40

This Q&A is published by European Banking Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

Similar Q&As

Grandfathering of capital instruments

Answered 2013-11-15

Grandfathering of Tier 1 instruments

Answered 2013-11-15

Grandfathering of own funds instruments

Grandfathering of Non-Step Tier 1 instruments

Answered 2013-11-15

Grandfathering

Answered 2014-05-23

More Q&As on this topic

C01.00 - CIU deduction from own funds

Answered 2025-03-21

4.0 Reporting Framework - COREP_OF C02 Template

Answered 2025-03-21

Direct contributions to reserves from shareholders

Answered 2025-02-07

Permission to reduce AT1, Tier 2 or eligible liabilities instruments and deduction rules in the context of a liability management exercise without replacement.

Answered 2024-04-05

Treasury shares – how to report them in Own Funds and in the NSFR

Answered 2024-02-23

📋 Track EU financial regulation continuously

Forseti monitors EU financial regulation and delivers personalised alerts anchored to verified official sources.

Start free trial → Learn more

14-day free trial. No credit card required.