Instruments for Meeting Capital Adequacy Requirements Under Basel III: A Shariah Perspective

What is it about?

This research will compare the qualifying Additional Tier-1 (AT1) and Tier-2 capital instruments under Basel III. In particular, the research will examine the Shariah issues, especially related to subordination, arising in both equity-based and exchange-based contracts when used for structuring AT1 and T2 capital instruments

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Why is it important?

The paper is important as it proposes the most appropriate Shariah contracts relevant for structuring AT1 and T2 capital instruments.