The Bundesbank is proposing giving European banks more than five years to overhaul how they use additional Tier 1 debt, as it seeks to salvage a controversial proposal to streamline banks’ capital structure. “To get to that ideal world we described, you need a transitional period,” Executive Board member Michael Theurer said in an interview. “It would need to be more than five years, given a change like this. You have to calibrate the capital requirements in a way that there is no additional need for capital in the system.”.
https://www.bloomberg.com/news/articles/2025-11-21/bundesbank-pitches-phase-in-to-salvage-banks-at1-debt-overhaul