M2 EQUITYBITES-March 31, 2017-Jyske Bank issues EUR300m supplementary Tier 2 capital
NORDIC BUSINESS REPORT-March 31, 2017-Jyske Bank issues EUR300m supplementary Tier 2 capital
In a statement, the central bank said, 'Revaluation reserves arising from change in the carrying amount of a bank's property consequent upon its revaluation would be considered as common equity tier 1 capital (CET1) instead of Tier 2 capital
The issuance proceeds will be used to boost NBK's Tier 2 capital
, as it has been approved as fully eligible Tier 2 Capital
by the Central Bank of Kuwait (CBK) under its Basel III framework, and for general and corporate purposes.
Thereafter, we will do tier 2 capital
of another $200m.
The total capital of the company including Tier 1 and Tier 2 capital
will increase to Rs.
875% 10-year non-call five issue that qualifies as Tier 2 capital
under Basel III.
The approval of the pre-termination of the subordinated debt, qualifying as Tier 2 capital
, came amid preparations for Basel III, which will take effect on Jan.
Another EUR450m was secured through transforming upper Tier 2 capital
into core Tier 1 capital, while EUR170m was generated through releasing unrevealed reserves and including fourth-quarter results.
Combined with Tier 2 capital
- which includes undisclosed reserves, general provisions and loan loss reserves, a bank statement said that overall capital adequacy will exceed 17 per cent.
72 billion of the deposits it received into Tier 2 capital
Tier 2 capital
is defined as (i) reserves for problem assets [bad debts] that may not exceed 100% of Tier 1 capital; (ii) perpetual preferred stock not qualified to include into Tier 1; (iii) hybrid capital instruments and mandatory convertibles; (iv) subordinated debt; and (v) preferred stock with medium-term remaining current maturity.