Permanent Interest-Bearing Shares (PIBS)

Permanent Interest Bearing Shares (PIBS) are deeply subordinated non-cumulative callable perpetual capital securities (with coupon stoppers) previously issued by UK building societies, which as mutual societies are not able to issue shares as the lowest-ranking instrument to be paid out in the event of insolvency. PIBS failed to qualify as regulatory capital under the EU’s 2014 Capital Requirements Regulation so are being phased out under a grandfathering scheme in favour of so-called Core Capital Deferred Shares, which qualify as Tier 1 capital under the CRR.