The Single Resolution Board, the European Banking Authority and ECB Banking Supervision welcome the comprehensive set of actions taken yesterday by the Swiss authorities in order to ensure financial stability. The European banking sector is resilient, with robust levels of capital and liquidity.
The resolution framework implementing in the European Union the reforms recommended by the Financial Stability Board after the Great Financial Crisis has established, among others, the order according to which shareholders and creditors of a troubled bank should bear losses.
In particular, common equity instruments are the first ones to absorb losses, and only after their full use would Additional Tier 1 be required to be written down. This approach has been consistently applied in past cases and will continue to guide the actions of the SRB and ECB banking supervision in crisis interventions.
Additional Tier 1 is and will remain an important component of the capital structure of European banks.
Please note that the English version prevails
Contact our communications team
Recent press releases
The SRB has decided to maintain its policy on the calibration of MREL (total and subordinated component) with minimal changes this year...
Revision of Prior permission regime: Commission Delegated Regulation (EU) 2023/827 applies from 9 May
- No impact on ongoing requests and permissions already granted by the SRB.
- The Delegated Regulation mirrors the EBA draft RTS, except for the...
ECB and SRB welcome the European Commission’s legislative proposals for the bank crisis management and deposit insurance framework
- Proposed legislative changes seen as important and pragmatic step forward
- ECB and SRB ready to provide technical input on proposals to ensure...