2.1 A Summary of Components of Capital
Effective from 2012-12-19 - Dec 18 2012
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| 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. | ||