Concept
Additional Tier 1 Capital 0
Additional Tier 1 Capital (AT1) is a form of contingent convertible bonds that banks use to bolster their capital reserves, providing a buffer to absorb losses and maintain financial stability during times of stress. These instruments are high-risk, high-yield securities that can be converted into equity or written down when a bank's capital falls below a certain threshold, thus protecting depositors and the financial system.
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