Translation of "Verluste auffangen" in English

These institutions are required to hold additional capital so as to better absorb potential losses.

A major challenge for authorities , however , is the proper definition of a regulatory framework that would allow banks » capital buffers to shrink in downturns ( i.e. to absorb losses ) , without creating moral hazard and regulatory arbitrage .

In such a scenario, a damaged bank could absorb more losses and remain in operation, diminishing creditors’ incentive to run.

Clearly , risk management failed to provide accurate signals for institutions to build up sufficient cushions that could absorb losses , when materialized .

The Hybrid Tier 1 security shall absorb losses after ordinary share capital (preference with respect to loss absorption).

Eligible instruments should absorb losses during liquidation but also help the institution to continue operations on a going concern basis and they should not hinder the recapitalisation of the issuer.

Moreover, additional capital provides a cushion in recessionary times to absorb losses and limits the risk of banks becoming insolvent.

For hybrids to be recognised as 'original own funds', they need to absorb losses, permit the cancellation of payment in times of stress, be deeply subordinated during liquidation and must be permanently available so that there is no doubt that it can support depositors and other creditors in times of stress.

Larger companies will normally have more activities in different Member States than smaller companies, which will ensure that larger companies can absorb losses more easily.

That scepticism was based on the following weaknesses: (a) a fragile funding structure, and in particular a large upcoming funding gap and a chronic shortage of USD-denominated funding, (b) a focus on cyclical and volatile activities likely to create recurring large combined losses, and (c) too low a capitalisation to be able to absorb such losses.

As the additional instrument for SPM bank is a replacement of capital it must also be fully loss absorbing, otherwise the regulator would not accept such a transaction.

More specifically, such a limitation is necessary in order to strengthen the business of institutions and avoid that institutions grow excessively or take excessive risks without being able to tackle setbacks and losses and to restore their capital base.

Own funds correspond to a (re)insurance undertakings' available financial resources which can serve as a buffer against risks and absorb financial losses, where necessary.

In a second step, as own fund items possess different qualities and provide for different levels of absorption of losses, those own fund items will be classified into three tiers, depending on their nature and the extent to which they meet five key criteria (i.e. subordination, loss-absorbency, permanence, perpetuality and absence of servicing costs), as set out in Article 92.

In a second step, as own fund items possess different qualities and provide for different levels of absorption of losses, those own fund items will be classified into three tiers, depending on their nature and the extent to which they meet five key criteria (i.e. subordination, loss-absorbency, permanence, perpetuality and absence of servicing costs), as set out in Article 93.

This will make EU banks more solid, strengthen their capacity to adequately manage risks linked to their activities and absorb losses they may incur.

Under the Capital Requirements Regulation (CRR) and the Capital Requirements Directive IV (CRD IV)11 being phased in from January 2014, banks are required to hold higher levels of capital, increasing their ability to absorb potential losses.

If initial financing for resolution is to come from the bail-in tool (so that shareholders and other creditors absorb the initial losses) and other tools provided in the Regulation, the single resolution mechanism should be accompanied by a single fund with the aim of severing the existing link between governments and the banking sector.

Furthermore, the Commission believes that the aid is a measure designed solely to wipe out losses incurred by the company and could affect trade between Member States.

Among other things, these G-SIBs are subject to stricter capital requirements so as to better absorb any losses.

This means that this form of financing is designed to absorb losses when needed, allowing the bank to continue as a going concern.

Outside financiers can assume that the state or regional authority standing behind public undertakings organised under private com- mercial law will absorb any losses.