European Banking Authorities Address Concerns Over Swiss Announcement and Bank Safety
The Single Resolution Board, European Banking Authority, and ECB Banking Supervision welcome the actions taken by Swiss authorities to ensure financial stability. The European banking sector is resilient with robust levels of capital and liquidity. The resolution framework in the EU establishes the order in which shareholders and creditors of a troubled bank should bear losses, with common equity instruments being the first to absorb losses. Additional Tier 1 is and will remain an important component of the capital structure of European banks.