Regulatory Technical Standards on own funds and eligible liabilities

The Regulatory Technical Standards (RTS) on own funds and eligible liabilities lay down harmonised rules governing own funds and eligible liabilities. They set out requirements for deducting foreseeable dividends from interim and year‑end profits, introduce specific provisions for mutual, cooperative and savings institutions, clarify the notions of direct and indirect funding of capital instruments, and establish a uniform approach to deducting certain items from own funds. In addition, the RTS describe circumstances that may give rise to an expectation of redemption of own funds and eligible liabilities instruments, ensure the timely activation of loss‑absorbency mechanisms for AT1 instruments, and define a detailed process for competent and resolution authorities to grant supervisory permission for the reduction of own funds and eligible liabilities instruments.