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Response
BSA response to the FSA's discussion paper on the definition of capital
Contact: Andrea Jeffries
Date: 2 Apr 2008
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Click on the pdf icon at the very bottom of this page to read the full BSA response to the FSA's discussion paper on the definition of capital. 

In its response, the BSA argues against the proposal to subject permanent interest bearing shares to the same principles as hybrid capital instruments issued by banks.  PIBS should not be categorised as innovative Tier 1 capital and should not be subject to the 15% limit against all Tier 1 capital.

FSA's discussion paper on the definition of capital - DP 07/6

(Also, of interest is the BSA's response to the Committee of European Banking Supervisors' draft proposals for a common EU definition of Tier 1 hybrids.

BSA response to CEBS' draft proposals for a common EU definition of Tier 1 hybrids

NEW!! CEBS has now issued its proposals on a common EU definition of Tier 1 hybrids:

CEBS's proposals to the European Commission - 3 April 2008

JP Morgan has prepared a summary of these proposals highlighting any differences from the draft:

Summary of CEBS's proposals to the European Commission)

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