The Basel Committee has issued loss-absorbency criteria which will lead to instruments included in Tier 1 and Tier 2 capital being considered part of regulatory capital. As of 1 January 2013, all instruments issued by a bank will have to include a provision requiring them to be written off or converted into common equity when the bank faces financial difficulties. This mechanism will be implemented when (i) a bank is required to impose a write-off on its subordinated creditors, or when (ii) the State decides to inject public sector capital into the bank.