easy · Frm Part 2 Current Issues
In the context of the 2023 Swiss bank resolution, what does the term 'viability event' specifically refer to as a trigger for AT1 instruments?
- A credit rating downgrade of the reference entity to 'D' (Default) by at least two agencies.
- The point at which the bank's net interest income (NII) becomes negative for two consecutive quarters.
- A drop in the Common Equity Tier 1 (CET1) capital ratio below 7.0%.
- A discretionary determination by the regulator that the bank would become non-viable, or the receipt of extraordinary public support.
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