Capital securities

From ACT Wiki
Revision as of 15:55, 29 October 2016 by Doug Williamson (Talk | contribs) (Create the page. Sources: HSBC AR 2105; BIS

(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

Bank supervision - capital adequacy.

Capital securities are securities issued by a regulated institution, which are eligible for inclusion in its capital, for capital adequacy assessment purposes.

Both the quality and the quantity of capital required have been increased very significantly over time.

Eligible capital securities include perpetual subordinated capital securities and contingent convertible capital securities.

Capital instruments which will no longer qualify in the future, but which used to be eligible in the past, are being phased out over a 10-year horizon from 2013 to 2022.

See also