Dutch International: It is unlikely that European AT1 bonds will be abolished.

date
04/02/2026
Suvi Kosonen of the Netherlands International Group stated in a report that the European Central Bank is unlikely to ban additional Tier 1 capital bonds issued by European banks, a similar proposal was put forward by the bank in December. AT1 bonds are debt instruments issued by banks and are considered high-risk bonds. The European Central Bank proposed in December to either modify the characteristics of AT1 bonds or ban this type of bonds. "We believe that the possibility of completely abolishing AT1 instruments in the short term is unlikely," Kosonen said. She mentioned that it is more likely to gradually modify these bonds.