Total regulatory capital will consist of the sum of the following elements:
|
| | • | Tier 1 Capital (going-concern capital)
|
| | | a. | Common Equity Tier 1Capital
|
| | | b. | Additional Tier 1Capital
|
| | • | Tier 2 Capital
|
For each of the three categories above (Tier-1-a, Tier-1-b and Tier-2 capital) there are sets of criteria that instruments are required to meet before inclusion in the relevant category. (Refer to attachment # 2 to 4).
|
Limits and minima
|
All elements above are net of the associated regulatory adjustments and are subject to the following restrictions (see also Annex 1):
|
| | • | Common Equity Tier 1 must be at least 4.5% of risk-weighted assets at all times.
|
| | • | Tier 1 Capital must be at least 6.0% of risk-weighted assets at all times.
|
| | • | Total Capital (Tier 1 Capital plus Tier 2 Capital) must be at least 8.0% of risk weighted assets at all times.
|
