Jay! EBA publishes first final draft technical standards on own funds.

The EBA published the first final draft technical standards on own funds. Its actually a bundle that complements CRR IV, the new European regulation on capital.

Haven’t had the time to digest fthe final versions, but there are four pieces, according to the EBA website:

  1. The RTS on own funds part I specify elements of own funds: Common Equity Tier 1 (CET1) capital, Additional Tier 1 capital, Tier 2 capital, deductions, and transitional provisions for own funds in terms of grandfathering. Check for the Tier~1 write down and rules on flexibility on payments.
  2. The RTS on Gain on Sale specify further the concept and the treatment of a gain on sale, defined as any increase (or part of an increase) in equity under the applicable accounting framework arising from future margin income in the context of a securitisation transaction.
  3. The RTS on own funds part II specify the conditions under which competent authorities may determine that a type of undertaking recognised under applicable national law qualifies as a mutual, cooperative society, savings institution or similar institution for the purpose of calculating own funds. Finally,
  4. The ITS on disclosure for own funds focus on disclosure requirements and aim at increasing transparency on regulatory capital held by European institutions.

Congratulations EBA on this achievement!