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
- Valuations are a critical component of successful bank resolution, forming the basis for resolution authorities’ decisions in crisis cases
- The...
Miguel Carcaño Saenz De Cenzano to become new SRB Vice-Chair
Slavka Eley and Radek Urban to join SRB as new Board Members
The Single Resolution Board...
- The consultation emphasises the importance of banks regularly testing their capabilities to handle a resolution action in case of crisis
- The consultati...