On 6 June 2013, EBA published near-final draft regulatory technical standards (RTS) on own funds under CRD IV.

The draft follows the EBA's April 2012 consultation on own funds (Part One). The draft RTS cover in particular:

  • Common equity Tier 1 capital.
  • Additional Tier 1 capital.
  • Deductions from common equity Tier 1 capital and from own funds in general.
  • General requirements (such as indirect holdings arising from index holdings and supervisory permission for reducing own funds).
  • Transitional provisions for own funds in terms of grandfathering.

Once formally adopted, the RTS will form part of the single rulebook aimed at enhancing European regulatory harmonisation and strengthening the quality of capital.

The draft RTS remain of a preliminary nature pending publication of the final Capital Requirements Regulation (CRR) in the Official Journal of the European Union.The EBA is publishing the draft RTS to provide institutions with an early insight into the EBA's views on capital instruments under the new regulatory framework and to give feedback on how it has addressed comments received during the April 2012 consultation. The draft RTS therefore remain subject to final formal adoption by the EBA, a review by the European Commission, and a period of potential objection by the Council of the EU and the European Parliament before they become EU law.