Bank of England says UK has clear hierarchy of creditors

Kitco Media
By Reuters
Published:
Updated:
Reuters
LONDON, March 20 (Reuters) - The Bank of England said on Monday that Britain had a clear statutory order in which shareholders and creditors of failed banks bear losses, following the wipeout of some bondholders in the rescue of Credit Suisse . "AT1 instruments rank ahead of CET1 and behind T2 in the hierarchy. Holders of such instruments should expect to be exposed to losses in resolution or insolvency in the order of their positions in this hierarchy," the BoE said in a statement. (Reporting by Kylie MacLellan, Writing by Andy Bruce; Editing by Kate Holton)

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