Regulatory Alerts2025-09-02
Decision on Detailed Requirements for the Write-down and Conversion of Capital Instruments and Eligible Liabilities of Banks
The Executive Board of the National Bank of Serbia issues this Decision to establish detailed requirements for the write-down and conversion of capital instruments and eligible liabilities of banks under resolution. The regulation mandates that the National Bank of Serbia may apply these measures independently or in combination with resolution tools, ensuring that no shareholder or creditor is worse off than in a bankruptcy scenario. It further specifies the hierarchy for loss absorption, valuation methods for compensation, and the procedures for cancelling or transferring shares based on asset valuations.
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