Share KCS-content Show Comments ▼ by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBeAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’DefinitionTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island Farmthedelite.comNetflix Cancellations And Renewals: The Full List For 2021thedelite.com whatsapp Tags: NULL Thursday 13 January 2011 8:30 pm whatsapp COMMERZBANK’S SHARE DEAL Read This Next’Pose’ Creator Steven Canals on Life After His Groundbreaking Show: ‘I’mThe Wrap’The Boys’ Star Aya Cash Took Inspiration From YouTube, TikTok and SteveThe WrapHow HGTV’s ‘Renovation Island’ Changed Bryan and Sarah Baeumler’sThe Wrap’Bridgerton’ Stars Phoebe Dynevor and Nicola Coughlan on Daphne andThe WrapBest Wine Gifts & Wine Accessories at Every PriceGayot’Hitman’s Bodyguard’s Wife’ Earns $17 Million 5-Day Opening as Box OfficeThe WrapFox News’ Mark Levin Says Capitol Riot Suspects ‘Would Be Treated Better’The WrapEverything We Know, or Think We Know, About the Time-Keepers on ‘Loki’The Wrap’The Crown’: What Went Into Finding Princess Diana and Margaret ThatcherThe Wrap Q.why does the bank need to improve its capital base?A.Global regulators are cracking down on hybrid capital, so the bank is shedding its hybrid capital in favour of stronger equity-based capital. Under Basel III, banks will no longer be allowed to consider hybrid capital as Tier 1 – the core funds that the lender might need during a financial crisis.Q.what’s wrong with hybrid capital?A.In short, it failed to act as an adequate buffer during the financial crisis. Hybrid capital has characteristics of debt and equity, making it stronger than pure debt. Interest payments can get suspended during “bad” times, yet the stresses seen in the past few years could prove too much.Q.has Commerzbank done enough?A.Not yet. The bank has certainly boosted its strength, although a €640m increase is not huge for a big lender. Its new Tier 1 capital ratio will be upped to around 10.25 per cent, up from 9.89 per cent. There could be further capital optimisation to come.