On 8 December 2021, the European Banking Authority (EBA) published an updated list of Common Equity Tier 1 (CET1) instruments of EU institutions. This list is accompanied by an updated CET1 report, which includes information on the underlying objectives of the monitoring as well as on the consequences of including or excluding instruments in or from the CET1 list.  The EBA’s monitoring of capital instruments contributes to the enhancement of the quality of institutions’ capital across the EU. The EBA will continue to update the report on a regular basis to give account of new developments in CET1 issuances and practices.

The CET1 report includes some background information on the monitoring work done to establish the CET1 list so as to provide external stakeholders with further guidance on the content and objectives of such list. The main results of the monitoring and assessment of CET1 instruments are summarised in a ‘lessons learnt’ section. The latest update includes, in particular, additional guidance in the context of (in)direct funding, refusal of redemption, redeemable shares, incentives for minimum dividends and minimum dividends.

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