BANK 3.2.32 Acknowledgments of debt

(1) A banking business firm must deduct from CET 1 capital the net present value of an acknowledgement of debt outstanding issued by it to directly or indirectly fund instruments that qualify as CET 1 capital.
(2) This rule does not apply if the acknowledgement is subordinated in rank similar to that of instruments that qualify as CET 1 capital.
Derived from QFCRA RM/2014-2 (as from 1st January 2015).