Improving the effectiveness of Additional Tier 1 capital instruments
This page contains relevant information regarding APRA's review of the effectiveness of Additional Tier 1 (AT1) capital instruments for use in a potential bank stress scenario.
On 21 September 2023, APRA released a discussion paper on the challenges of using AT1 capital instruments, often referred to as “hybrid” capital bonds, in a potential bank stress scenario in an Australian context.
APRA has called for feedback on a range of potential options to overcome these challenges and improve the effectiveness of AT1 capital instruments.
Written submissions should be sent by 15 November 2023.
The discussion paper is available below:
Note on submissions
It is APRA's policy to publish all submissions on the APRA website unless the respondent specifically tells APRA in writing that all or part of the submission is to remain confidential. An automatically generated confidentiality statement in an email does not satisfy this purpose. If you would like only part of your submission to be confidential, you should provide this information marked as 'confidential' in a separate attachment.