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 […]