This document outlines the deductions required from Common Equity Tier 1 (CET1) items by institutions, highlighting specific components such as current financial year losses, intangible assets, and deferred tax assets linked to future profitability. It also addresses the treatment of holdings in CET1 instruments and inadequate coverage for non-performing exposures, among other aspects.

The European Banking Authority (EBA) is tasked with developing regulatory technical standards to clarify these deductions and ensure compliance across the sector. Moreover, a framework for specialised debt restructurers is introduced, establishing criteria that must be met for exemption from certain coverage requirements, ultimately aiming to facilitate the secondary market for non-performing loans.