The Additional Tier 1 (AT1) capital of a financial institution is defined as comprising Additional Tier 1 items, which are subject to specific deductions as stipulated in Article 56. Furthermore, the provisions of Article 79 must be applied to ascertain the net AT1 capital position.

This regulatory framework aims to ensure that AT1 capital, a critical component of a bank’s solvency and resilience, is adequately quantified and reflects only the permissible elements after the necessary adjustments. Compliance with these Articles is essential for maintaining robust capital standards in accordance with the prudential regulatory requirements.