Compliant Bank Preferred Shares

New Capital Guidelines

January 23, 2015

Basel III is a framework which includes new capital guidelines to help protect against any future economic or financial crisis. The new requirements for banks have changed the criteria for Tier 1 Capital instruments (which includes preferred shares).

The capital treatment of existing bank preferred shares (except CM.PR.D, E, G, & RY.PR.W) is being phased out over a 10‐year period (2013‐2022). Therefore, it is expected that by January 1, 2022 the banks will have redeemed the majority of their outstanding preferred shares.

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