2018年-EBA欧洲银行管理局_CET1_report_Q2_2018_update_31页_781kb

EBA Report on the Monitoring of CET1 Instruments Issued by EU Institutions — First Update

Executive Summary

The European Banking Authority (EBA) published this report as part of its ongoing monitoring of Common Equity Tier 1 (CET1) instruments issued by EU institutions, in accordance with Article 80 of Regulation (EU) No 575/2013 (CRR). The report is the first update to the CET1 report, which was first published in May 2017.

Main Reasons for Publication

• To provide guidance on the content and objectives of the CET1 list.
• To clarify the implications of including or excluding an instrument in the CET1 list.
• To give feedback on the EBA’s monitoring work across the EU.

Key Findings

• The EBA has maintained and published a CET1 list since May 2014, with six subsequent updates.
• The list includes 117 types of CET1 instruments across 28 EU jurisdictions.
• The EBA has assessed 13 new instruments issued after the CRR came into force on 28 June 2013.
• Some pre-CRR instruments were reviewed and found to comply with the new regulatory requirements.
• Instruments that do not meet the eligibility criteria under the CRR and RTS are not included in the list.
• The EBA has made requests for amendments to certain instruments, particularly regarding permanence, loss absorption, and flexibility of payments.

EBA CET1 List: Purpose and Content

Legal Mandate

• The EBA is required to:
  • Maintain and publish a list of all CET1 instruments in each Member State.
  • Monitor the quality of own funds instruments and notify the Commission if significant evidence shows non-compliance with CET1 criteria.

Publication of the List

• The list was first published on 28 May 2014, based on information from competent authorities.
• It includes both pre- and post-CRR CET1 instruments.
• The list is updated regularly depending on new instruments or changes to existing ones.

Content and Features of the List

• The list provides the following information for each instrument:
  • Country of issuance
  • Name of the instrument (in English and national language)
  • Governing law
  • Whether the instrument can be issued in addition to other CET1 instruments
  • Voting rights (full, fewer, or none)
  • Eligibility under Article 28 or 29 of the CRR
  • Grandfathered status (state aid or non-state aid)
  • Inclusion of instruments issued under Article 31 of the CRR (emergency capital instruments)

Number of Types of Instruments Listed

• Total CET1 instruments: 117
• Post-CRR instruments: 13
• Fully eligible under Article 28: 63
• Fully eligible under Article 29: 33
• Grandfathered non-state aid instruments: 19
• Instruments issued under Article 31: 2

The EBA's Role in CET1 Monitoring

Exhaustiveness of the List

• The CET1 list is intended to be exhaustive, including all CET1 instruments that meet the CRR and RTS criteria.
• Instruments not included in the list are not recognized as CET1 instruments under the CRR.
• The EBA has the authority to remove instruments from the list if they fail to meet the eligibility criteria, and to notify the Commission of such findings.

Process Followed

• A common reporting format has been established for competent authorities to provide detailed information on new CET1 instruments.
• The EBA reviews all submitted documentation, including terms and conditions, national laws, and corporate statutes.
• In some cases, the EBA has invited issuing institutions to clarify features of the instruments.
• The EBA Board of Supervisors ultimately approves any amendments to the list.

State Aid vs. Non-State Aid Instruments

• State aid instruments issued under Article 483 of the CRR were removed from the list at the end of 2017.
• Non-state aid instruments that were grandfathered may still be eligible, depending on whether they have been modified to meet CRR requirements.
• Emergency capital instruments issued under Article 31 of the CRR may be included in the list if they are deemed equivalent to CET1 instruments, but their inclusion does not imply that they should be used by all institutions in the jurisdiction.

Assessment of CET1 Issuances — Lessons Learnt

Key Criteria Assessed

• Permanence: Instruments must be permanently held by the institution.
• Loss Absorption: CET1 instruments must absorb losses without requiring immediate repayment.
• Flexibility of Payments: Instruments must allow for flexibility in payment terms, with no preference in the order of payments.
• Voting Rights: Instruments may have full, fewer, or no voting rights, depending on their structure and governing law.

Notable Observations

• The EBA has identified that non-voting shares may have higher distribution rights but are subject to limitations on their issuance (e.g., up to 50% of share capital).
• The timing of payment for share capital varies by jurisdiction, with some requiring full payment at inception and others allowing for delayed payment.
• The EBA emphasizes the need for constant availability of CET1 instruments to serve as the first backstop to losses, and therefore cash commitments on demand or at a future date are not considered fully paid up.

Others — Q&As

• The EBA has addressed various questions related to CET1 instruments, including:
  • Whether an instrument can be issued in addition to other CET1 instruments.
  • The implications of voting rights and distribution policies.
  • The role of state aid in CET1 eligibility.
  • The treatment of emergency capital instruments.

Annex: Legal References

• The report is based on the CRR and Commission Delegated Regulation (EU) No 241/2014.
• It incorporates the EBA’s RTS on own funds, particularly Part 4 on multiple dividends.
• It also references the EBA Regulation (Article 17) and the Commission’s power to initiate infringement procedures.

This report aims to ensure a consistent and transparent application of CET1 eligibility criteria across the EU, and to provide guidance for future issuances and market participants.