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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.
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.
"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.
*[[Principal write down]]
*[[Additional Tier 1]]
Revision as of 00:12, 12 March 2023
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.