Prudential filters took a smaller bite out of bank capital in 2020

Prudential haircuts to fair value (FV) assets cut €11.2 billion ($13.5 billion) off top EU banks’ Common Equity Tier 1 (CET1) capital at end-2020 – 10% less than a year ago, reflecting in part the ‘quick fix’ to banking rules ushered in on the outbreak of the coronavirus crisis.

Additional value adjustments (AVAs) are deductions applied to bank capital to account for the valuation uncertainty of certain FV assets. Put simply, AVAs are the difference between a bank’s FV of its own equity, and

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: