Contingent convertible bonds (CoCos) will need to be more
widely-tested before the instrument is recognised in Hong Kong,
the Hong Kong Monetary Authority (HKMA) has told
The Bank of China recently submitted recommendations to the
Basel Committee on Banking Supervision (BCBS) that the scope of
application of CoCos be expanded on the basis of existing
regulations to meet additional capital requirement for G-Sibs
(global systemically important banks).
The statement, a response to the Committee's proposal that
the bulk of additional loss absorbency for G-Sibs be met with
Common Equity Tier 1 (CET1), said...