Advanced Capital and Leverage Management Concepts Flashcards
(3 cards)
1
Q
What is the Double Leverage?
A
It is possible to downstream Group capital differently to how it was issue to solve entity capital issues outside of MREL.
For example, Group can issue a Tier 3 bond to the market, but this can then be down-streamed to BBPLC as CET1. This improved BBPLC’s CET1 ratio relative to Group.
To do this from debt to equity, as in the example, requires PRA permission
2
Q
Explain Net Generated Equity (NGE)
A
Transactions can be assessed in terms of their NGE
Which is typically expressed in CET1 basis points terms
3
Q
What is NGE?
A
Net Generated Equity
