Common Equity Tier 1 items are qualifying capital instruments, related share premium, retained earnings, accumulated other comprehensive income, other reserves and funds for general banking risk, the reserves counting only where available for unrestricted and immediate use to cover losses. Interim or year-end profits may be included before the formal decision only with the competent authority's permission, after independent verification by the auditors and deduction of any foreseeable charge or dividend. Instruments qualify only if they meet every Article 28 condition, among them: issued directly with owner approval, fully paid and not funded by the institution, classified as equity, perpetual, principal not reducible except in liquidation or with Article 77 permission, no preferential or mandatory distributions, distributions only out of distributable items, first and proportionate absorption of losses and most subordinated in insolvency. New issuances may be classified as Common Equity Tier 1 only after permission (or notification of substantially identical later issuances), and institutions must judge compliance on the substance of all related arrangements, not only legal form.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.