EBA · 2016_2687 Rejected question

AT1 distribution and full year loss

Regulation
Directive 2013/36/EU (CRD)
Article
article 141
Topic
Supervisory review and evaluation (SREP) and Pillar 2
Submitted by
Investment firm
Submitted
2016-03-22
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Question

Except what is provided under Article 141 of the CRD, is there any restriction imposed on distribution for an institution posting a full year (FY) Net Loss ? (assuming th entity in question runs with excess capital vs. regulatory requirements, so it's not under MDA restrictions)

Background

We did not understand the statement 25.b. "review the prohibition on distribution, notably in so far as it relates to AT1 instruments, in all circumstances when no profits are made in any given year." in the paper published by the EBA in December 2015 ( EBA/Op/2015/24 - Opinion of the European Banking Authority on the interaction of Pillar 1, Pillar 2 and combined buffer requirements and restrictions on distributions)
No answer published yet.

Original source: European Banking Authority, Q&A ID 2016_2687

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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