Europe’s banks split on capital plans ahead of EBA deadline

With capital in increasing focus this year, tier one hybrids and the European Banking Authority’s contingent capital securities are being considered by the strongest bank borrowers. But FIG market participants are pessimistic about attempts to change the EBA’s Coco term sheet, and say that most banks will use deleveraging, profit retention and liability management exercises to reach the 9% core capital requirement by the end of June.