Freedom of Contract and Limits to Conform the Distribution Privileges Attributable to common Equity Tier 1 Instruments of European Banks
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Abstract
According to Capital Requirement Regulation (CRR, regulation n. 575/201), shares of a bank have to possess certain characteristics in order to be classified as prudential capital. Those characteristics affect banks’ freedom to determine the rights appointed to the shares. The essay examines the limits in which bankers’ freedom moves. In this context, it considers the privileges that may still be provided to create shares with privileged both dividend and voting rights.
Keywords
- Dividend
- Shares
- Preferred-Shares
- Privileged-Shares
- Bank Capital
- Common Equity Tier 1
