Brown and Contingent convertible capital: Difference between pages

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''Sustainability''.
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.


In the context of sustainability, 'brown' refers to activities, assets or projects that are not 'green'.
"Contingent convertible capital securities" is frequently and conveniently abbreviated to "CoCos".


For example, brown assets are ones that contribute to climate change through the emission of greenhouse gases.
The [[BIS]]'s quarterly report of September 2013 has a useful [http://www.bis.org/publ/qtrpdf/r_qt1309f.pdf primer] on CoCos.




An alternative term for this description is ''grey'', rather than brown.
==See also==
 
*[[BIS]]
 
*[[Capital]]
== See also ==
*[[Capital adequacy]]
* [[Brown hydrogen]]
*[[Hybrid]]
* [[Brownfield]]
*[[PLAC]]
* [[Climate Financial Risk Forum]]
*[[PONV]]
* [[Green]]
*[[Principal write down]]
* [[Green asset]]
* [[Green bond]]
* [[Green Bond Principles]]
* [[Green buffer]]
* [[Green energy]]
* [[Green loan]]
* [[Green Loan Principles]]
* [[Greenhouse gas]]
* [[Grey energy]]
* [[Sustainability]]
 
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Ethics]]
[[Category:Financial_products_and_markets]]

Revision as of 14:37, 13 August 2016

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.

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

The BIS's quarterly report of September 2013 has a useful primer on CoCos.


See also