Article 12
Instruments capital as referred to in Article 11 paragraph (1) letter a point 1 shall meet the following requirements:
a. issued and fully paid;
b. be subordinated to any other capital components;
c. is permanent;
d. can not be paid back by the Bank, unless it meets criteria for repurchase of shares (treasury stock) or upon liquidation;
e. is available to absorb losses incurred before liquidation or upon liquidation;
f. acquisition yield can not be determined and can not be accumulated between periods;
g. not protected or guaranteed by the Bank or its subsidiaries;
h. there is no agreement to increase seniority instruments legally or economically;
i. has the characteristics of dividend payments or yield:
1. can only be done if the Bank has complied with all legal and contractual obligations and make payments on the yield of other capital instruments;
2. comes from retained earnings and / or profit for the year;
3. does not have an exact value and not related to the amount paid up capital instruments; and
4. do not have a preference feature;
j. funding sources do not come from the issuing bank, either directly or indirectly; and
k. classified as equity based financial accounting standards.
8.
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