AT1 supply to rise on Pillar 2 flexibility

摘要

Additional Tier 1 issuance from the eurozone is set to significantly increase over the coming years thanks to a capital reprieve for the region's banks, adding to the product's importance after a standout year. Andrea Enria, chair of the European Central Bank's supervisory board, confirmed on December 12 that eurozone banks will be able to count subordinated debt towards their Pillar 2 capital requirements, under new rules in the Capital Requirements Directive (CRDV).