13. In order to be included as own funds, AT1 instruments should meet the conditions of Article 52 …

In order to be included as own funds, AT1 instruments should meet the conditions of Article 52 of Regulation (EU) No 575/2013. Article 52 provides that AT1 instruments should contain contractual provisions according to which, upon the occurrence of a trigger event, the principal amount of the instruments is written down on a permanent or temporary basis or the instruments is converted to CET1. For the purposes of this provision, Article 54(1), (a) of Regulation (EU) No 575/2013 further requires that AT1 instruments be converted when the CET1 ratio decreases to 5.125%, or higher if specified in the provisions governing the instrument. The provisions of the instrument may include more than one trigger, and must specify either the rate of conversion and limit on permitted amount of conversion, or a range within which the instruments will convert to CET1 (Article 54(1), (b) and (c) of Regulation (EU) No 575/2013).

1. Overview

1.1 References

• Article 52 Additional Tier 1 instruments

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA -

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