AT1s are becoming a thorny issue for regulators

By Tyler Davies
28 Jul 2020

When the European Central Bank (ECB) is suggesting the additional tier-one market could cost the euro area up to 0.25% of GDP growth in the next year and a half, it is probably time to start thinking about reforming the asset class.

Who would have predicted last year that the ECB would have trouble convincing banks to run with lower capital ratios in the summer of 2020?

Normally, the industry is chomping at the bit for any kind of relaxation in capital requirements. 

But with nothing except uncertainty about how ...

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