EBA · 2013_56 Final Q&A

Grandfathering on own funds instruments

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
489
Topic
Own funds
Submitted by
Credit institution
Submitted
2013-07-10
Answered
2013-11-15
Answer provided by
ESAs (EBA, ESMA, EIOPA)
Browse ECB SSM Register → More Q&As on this regulation →

Question

What will be the treatment of the "phased-out" amounts which exceed the applicable percentages according to Article 486 (5)) of grandfathered Additional Tier 1 instruments which are non-eligible due to an incentive to redeem (accord. to Art 489) or a coupon pusher (accord. to Art 53 (a)), during the grandfathering period (accord. to Art. 486 (5)). Will the phased-out amounts flow into grandfathered Tier 2 amounts (subject to applicable limits) or will they lose their regulatory recognition completely (i.e. are these amounts entirely eliminated from regulatory own funds)?

Background

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Answer

See QA 2013 15 and QA 2013 31 .

Original source: European Banking Authority, Q&A ID 2013_56

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.

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