KTastrophe Notes

KTastrophe Notes are a new form of senior non-preferred bank debt. The Notes are designed to qualify as Total Loss Absorbing Capacity/Minimum Requirement for Own Funds and Eligible Liabilities (TLAC/MREL). They are subject to write-down upon the bank’s reaching the point of non-viability and come in two forms:

  • Senior, non-preferred debt

  • Subordinated debt