Strengthening the Going-Concern Role of AT1: Options and Trade-offs
Are Additional Tier 1 (AT1) instruments actually functioning as going-concern capital — or have they become, in practice, a gone-concern tool? The Financial Stability Institute’s (FSI) latest report warns that the sector has never been stress-tested through a severe economic downturn, leaving leverage and borrower credit quality vulnerabilities untested. Key concerns include deepening ties between […]
Cross-border crisis simulation exercise in Northwest Africa
FSI Occasional Papers No 25 The Financial Stability Institute conducted a crisis simulation exercise involving authorities from jurisdictions in Northwest Africa. Together, they worked to manage the simulated failure of a fictional regionally systemic cross-border banking group. Based on the exercise’s findings, the report provides targeted recommendations to enhance crisis management frameworks and practices. In […]