The Netherlands’ top financial regulator urged policymakers to take a “pragmatic” approach to overhauling Europe’s complex bank capital structures, amid concerns they could torpedo the $270 billion market for additional tier 1 debt.
In an interview with Bloomberg News, Steven Maijoor declined to comment specifically on Germany’s suggestion to let banks use only common equity tier one capital in their main capital ratios. That would exclude the additional tier 1 debt that has surged in popularity despite losses suffered by investors during the Credit Suisse collapse in 2023.