HSBC reclassifies debt to bolster Tier 2 capital
Review of securities to add 40bp to bank's total capital ratio
HSBC took steps to recognise billions in debt securities as eligible regulatory capital in May, as part of an effort to strengthen its buffers ahead of the implementation of the EU’s second Capital Requirements Regulation (CRR II).
The changes translate to a 40 basis point improvement in the UK bank’s total capital ratio, which would have been 21.1% at quarter-end had they been made before the
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