27 March 2023

Hierarchy of Banks’ Liabilities

The Credit Suisse Write-Down of AT1 instruments has taken market participants by surprise, but it seems to be the result of the exercise of discretionary powers by the Swiss regulator rather than the establishment of a new market standard.

Given the current regulatory framework under Luxembourg and EU law, it seems unlikely that AT1 instruments issued by Luxembourg based institutions are written down before CET1 instruments had al-ready absorbed all the losses they could. Investors should take a closer look beforehand at the contractual terms of the AT1 instruments they intend to subscribe.

The GSK Update provides further insights regarding additional tier 1 instruments’ principal write down under Luxembourg and EU legislation.


Press contact
Beate Dünschede
+352 271802-29


GSK Updates
  • 06.04.2023

    GSK Update: Bill of Law: Modernising the Luxembourg Investment Funds Toolbox

    Read more
  • 27.03.2023

    GSK Update: Hierarchy of Banks’ Liabilities

    Read more
  • 22.03.2023

    GSK Update: DLT Pilot Regime and Blockchain III Law

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Contact person

Andreas Heinzmann, LL.M. eur.


+352 271802-30


Dr. Manuel Fernandez

Local Partner

+352 271802-31


Valerio Scollo, LL.M. (NYU), LL.M. (NUS)

Local Partner

+352 271802-32


Christoforos Naziroglou


+352 271802-362


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