Contingent convertible capital and Trans-European automated real-time gross settlement express transfer: Difference between pages

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Contingent convertible capital is made up of hybrid capital securities that, through a conversion mechanism, provide additional capital available to absorb losses when the capital of the issuing institution falls below a certain level. They are generally used by banks in meeting regulatory capital requirements.
(TARGET).  


A payment system composed of one real-time gross settlement (RTGS) system in each of the countries of the European Union (EU) plus a number of non-EU countries and the European Central Bank (ECB) payment mechanism.


Depending on its terms, contingent convertible capital may be treated by regulators either as Additional Tier 1 (AT1) capital, or as Tier 2 (T2) capital.


The domestic RTGS systems and the ECB payment mechanism are interconnected according to common procedures (interlinking) to allow cross-border transfers throughout the EU to move from one system to another.


"Contingent convertible capital securities" is frequently and conveniently abbreviated to "CoCos".


The [[BIS]]'s quarterly report of September 2013 has a useful [http://www.bis.org/publ/qtrpdf/r_qt1309f.pdf primer] on CoCos.
== See also ==
* [[European Central Bank]] (ECB)
* [[Gross settlement system]]
* [[Interlinking]]
* [[Payments and payment systems]]
* [[Real-time]]
* [[Real-time gross settlement system]]
* [[TARGET2]]


 
[[Category:Cash_management]]
==See also==
*[[BIS]]
*[[Capital]]
*[[Capital adequacy]]
*[[Capital securities]]
*[[Hybrid]]
*[[PLAC]]
*[[PONV]]
*[[Principal write down]]
*[[Additional Tier 1]]
*[[Tier 2]]

Revision as of 00:12, 12 March 2023

(TARGET).

A payment system composed of one real-time gross settlement (RTGS) system in each of the countries of the European Union (EU) plus a number of non-EU countries and the European Central Bank (ECB) payment mechanism.


The domestic RTGS systems and the ECB payment mechanism are interconnected according to common procedures (interlinking) to allow cross-border transfers throughout the EU to move from one system to another.


See also

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