Hybrids in the news

European Banking Group Seeks to Scale Back Basel Capital-Surcharge Plans

The European Banking Federation (EBF) wants global regulators to scale back plans to impose capital surcharges of as much as 2.5 percentage points on banks. In a letter send to the Basel committee on Aug 26, the EBF states that such a surcharge would cause global financial system turmoil, because the requirements may damage economic recovery.

Bundesrat will das Risiko «Grossbanken» weiter eindämmen

Sind Coco-Bonds der CS ein Schnäppchen?

Final EBF response to the BCBS consultation on the assessment methodology and the additional loss absorbency of Global Systemically Important Banks

The EBF is of the opinion that rule makers should offer flexibility so as to admit contingent capital as an eligible instrument to meet the additional loss absorbency requirement. Despite the little experience, there is opportunity for a market development in the coming years up to the implementation date of these rules.

Swiss CoCo law enters parliament

Swiss authorities have unveiled legislative plans adapting the country's tax framework to make it easier for financial institutions to issue contingent convertible bonds.

Australia and New Zealand Banking Group : ANZ launches Convertible Preference Share (CPS3) Offer

OSFI Releases Final Advisory on Non-Viability Contingent Capital

Global Bank Capital Regime at Risk as Regulators Spar Over Rules

CIBC sets template for contingent capital

CIBC has been working with the OSFI to see if three of its outstanding preferred share issues, with a face value of $881-million, could be treated as contingent capital. They got an approval for this and have set a standard for contingent capital in Canada

Canada leads the way on hybrids while Europe waits

Further clarity emerged this week as to what regulators will require from banks to make bank capital instruments compliant under Basel 3 when Canada released its rules on non-viability contingent capital.

Short-selling ban boosts bank shares - FT.com

Germany’s market regulator BaFin said on Friday it had not seen any signs of abuse to warrant taking further action against short selling and Dutch regulator AFM said it had decided against introducing a ban after consulting other European regulators. Italy, Spain, France and Belgium imposed a short selling restriction on the other hand. The UK does not impose anything for the moment. However, differences were quickly emerging between the four countries that have introduced the latest ban. All four countries have applied the restrictions to various stocks, but the French and Belgium rule changes do not appear to cover derivatives, which are included in the Spanish ban.

Short Selling of Stocks Banned in France, Spain, Italy, Belgium

Ring-fences and firewalls – the future of the UK banking industry?