Capital securities and Liikanen Report: Difference between pages

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''Bank supervision - capital adequacy''.
A European Union proposal for a regulation to stop the largest banks from engaging in proprietary trading (comparable with the Volcker Rule in the US Dodd-Frank Act).


Capital securities are securities issued by a regulated institution, which are eligible for inclusion in its capital, for capital adequacy assessment purposes.
The proposals for the EU would also give supervisors the power to require those banks to separate certain potentially risky trading activities from their deposit-taking business, if the pursuit of such trading activities were deemed to compromise financial stability.




Both the quality and the quantity of capital required have been increased very significantly over time.
The proposals are also known as the 'Liikanen rule' or the Barnier-Liikanen rule.


Eligible capital securities include perpetual subordinated capital securities and contingent convertible capital securities.
Capital instruments which will no longer qualify (but which used to be eligible in the past) are being phased out over a 10-year horizon from 2013 to 2023.




==See also==
==See also==
*[[Capital]]
*[[Dodd-Frank]]
*[[Capital adequacy]]
*[[European Union]]  
*[[Contingent convertible capital]]
* [[Financial CHOICE Act]]
*[[Hybrid]]
*[[Ring fence]]
*[[Instrument]]
*[[Vickers Report]]
*[[Perpetual bond]]
*[[Volcker Rule]]
*[[Security]]
*[[Subordinated debt]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Compliance_and_audit]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 20:53, 14 February 2020

A European Union proposal for a regulation to stop the largest banks from engaging in proprietary trading (comparable with the Volcker Rule in the US Dodd-Frank Act).

The proposals for the EU would also give supervisors the power to require those banks to separate certain potentially risky trading activities from their deposit-taking business, if the pursuit of such trading activities were deemed to compromise financial stability.


The proposals are also known as the 'Liikanen rule' or the Barnier-Liikanen rule.


See also