EBA · 2019_4719 Rejected question

Moment of deduction for cooperative shares

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
77
Topic
Own funds
Submitted by
Competent authority
Submitted
2019-05-14
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Question

In the case of a cooperative institution, should deductions from own funds with regard to a permission to reduce CET1 capital in accordance with Article 77(a) of Regulation (EU) No 575/2013 (CRR) and Article 32 of the RTS on Own Funds be made right after the permission from the competent authority (CA) is granted (as laid down in Article 28 (2) of the RTW on Own Funds ) or could it be later for instance at the time when the institution receives the notification of the intention to redeem from the shareholder?

Background

The context was the situation where a bank wants to redeem an AT1 instrument and has obtained the permission from the competent authority but has not yet announced the redemption to the market/holders.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2019_4719

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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