Examples of Common Equity Tier 1 instruments in a sentence
CET 1 Instruments means any (directly or indirectly issued) capital instruments of the Issuer that qualify (or would qualify if the Issuer was subject to the CRR) as Common Equity Tier 1 instruments pursuant to Article 28 of the CRR, including any capital instruments that qualify as Common Equity Tier 1 instruments pursuant to transitional provisions under the CRR.
Alternatively, such other capital instruments may provide that they shall convert into Common Equity Tier 1 instruments or become entitled to reinstatement of the principal amount of the Notes or other compensation in the event of a potential recovery of the Issuer or any other member of the Group or a subsequent change in the Group’s financial condition.
Article 437(1) (b) requires disclosure of the main features of Common Equity Tier 1 instruments.
The capital instruments comprising CET1 Capital fully qualify as Common Equity Tier 1 instruments as they meet all conditions set out in the CRR.
The Tier 2 loans rank as subordinated claims, which are subordinated to senior creditors but rank ahead of Common Equity Tier 1 instruments and Additional Tier 1 instruments.