kaal:claim:2061166-035

Conversion of contingent capital securities from debt to equity should be timed to occur once problems are first detected but before the early intervention powers of regulatory authorities are triggered.

Source quote, verbatim

Conversion of CCS from debt to equity should take place when problems are first detected but before early intervention powers of regulatory authorities are triggered.

From

Christoph K. Henkel, Wulf A. Kaal, Contingent Capital in European Union Bank Restructuring (2012), VI. CONTINGENT CAPITAL AS A PREVENTATIVE TOOL IN EUROPEAN UNION BANK RESTRUCTURING, p. 70
https://ssrn.com/abstract=2061166 · source PDF

Cite as

Christoph K. Henkel, Wulf A. Kaal, Contingent Capital in European Union Bank Restructuring (2012). SSRN: https://ssrn.com/abstract=2061166

Holds when

European Union bank resolution framework with early intervention powers

Classification

designsupport: assertedcontingent-capitalsystemic-risk

Related claims

extends kaal:claim:1908473-004 If conversion from debt to equity is triggered too late, the institution may already be in the resolution stag...

Verify

The quote above is an exact substring of the source PDF, whose sha256 is 43625ea260d0fc045e86d3435df50c9d0ca4abf8542e6085a6165be6653b4a7b. Extraction method: pdf-text-layer.
Attestation record: colloquium/attestations/9faa9ec20de910b8...json
Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/2061166-035.md | sha256sum