· A reduction in tier 2 issuances as
banks work to meet Basel III’s capital quality
· Given the
instrument’s treatment under the rules, banks are
now more focused on building up tier 1 reserves and selling off
· A decline in contingent
convertible bond issues has also been predicted as those banks
with a funding gap are unlikely to issue a product that brings
investors to equity.
Lawyers in Europe have predicted a decline in tier 2
issuances as banks work to meet Basel III’s
capital quality requirements.
Under Basel III, bank will be required to triple core tier 1
capital ratios from two percent to seven percent by 2019. In
addition to the minimum capital requirements, Basel III
introduces a capital...