Delfiner, Miguel and Pailhé, Cristina (2006): Instrumentos híbridos de capitalizacion bancaria. Published in: Central Bank Working Papers (December 2006)
Download (201Kb) | Preview
This paper reviews the markets and regulatory framework for hybrid financial instruments, with special focus on the recent regulatory changes allowing banks in Argentina to hold these instruments as regulatory capital. These assets refer to a wide family of instruments which have the structure of bonds, but incorporate equity-like features such as interest deferral, profound subordination, and long dated tenor. In 1998 the Basel Committee on Banking Supervision established minimum requirements and limits for these instruments to be included in Tier 1 capital. As a consequence markets for hybrids expanded considerably, and they were admitted in Canada, the United States and various Asian and European countries. In the Latin-American region they were admitted in Brazil and Mexico, and as from 2006 also in Argentina. In addition, these securities are described from the viewpoint of investors, focusing on risk and related costs, which contributes to the understanding of the regulation that applies to them.
|Item Type:||MPRA Paper|
|Institution:||Central Bank of Argentina|
|Original Title:||Instrumentos híbridos de capitalizacion bancaria|
|English Title:||Hybrid instruments for bank capitalization|
|Keywords:||Hybrid instruments; regulatory capital; Basel Capital Accord|
|Subjects:||G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation|
|Depositing User:||Cristina Pailhé|
|Date Deposited:||24. Jan 2007|
|Last Modified:||14. Feb 2013 12:41|
- Banco Central de Brasil (2001): Resoluçao 2837/01
- Banco Central de la República Argentina (BCRA): “Texto Ordenado de Capitales Mínimos de las Entidades Financieras”
- Banco Central de la República Argentina BCRA (2006-a): Com. “A” 4576.
- Banco Central de la República Argentina BCRA (2006-b): Com. “A” 4589
- Banco Central de la República Argentina BCRA (2006-c): Com. “A” 4591
- Basel Committee on Banking Supervision (BCBS, 1988): “International Convergence of Capital Measurement and Capital Standards”, July.
- Basel Committee on Banking Supervision (BCBS, 1998): “Instruments eligible for inclusion in Tier 1 capital”, 27 October.
- Basel Committee on Banking Supervision Working Paper No.12 (BCBS WP, 2003): “Markets for bank subordinated debt and equity in Basel Committee member countries”
- Basel Committee on Banking Supervision (BCBS, 2004): “International Convergence of Capital Measurement and Capital Standards. A revised framework”, updated June 2006.
- Citigroup (2006): “Elements of bank capital”
- Directivas de la Unión Europea: “Own Funds Directive” (OFD 89/299/EEC), “Solvency Ratio Directive” (SRD, 89/647/EEC),“Capital Adequacy Directive” (CAD, 93/6/EC).
- Federal Reserve Bank: “Code of Federal Regulations: Appendix A to Part 225—Capital Adequacy Guidelines for Bank Holding Companies: Risk-Based Measure”
- Financial Services Authority (2003): “Tier 1 Capital for banks: update to ‘Interim Prudential Sourcebook: Banks’ ”, Noviembre.
- Financial Services Authority (2004): “Interim Prudential Sourcebook: Banks – Section”, Enero.
- JP Morgan (2006): “Tier 1 Capital Securities – discussion material”, Febrero.
- Morgan Stanley (2003), Fixed Income Research Europe: “Bank Capital A –Z”
- Secretaría de Hacienda y Crédito Público de México (2000): “Reglas para los requerimientos de capitalización de las sociedades nacionales de crédito, instituciones de banca de desarrollo”, 24 de octubre.