Book traversal links for 2.1 Component of Capital
2.1 Component of Capital
C 52/2017 STA Effective from 1/12/202212.Total regulatory capital will consist of the sum of the following items:
- i.Tier 1 capital, composed of
- a.Common Equity Tier 1 (“CET1”)
- b.Additional Tier 1 (“AT1”)
- ii.Tier 2 capital.
These regulatory capital components are net of regulatory adjustments.
13.Article (2.2) of Capital Adequacy Regulation requires banks to apply the following minimum requirement, at all times:
- i.CET1 capital must be at least 7.0% of risk-weighted assets (RWA).
- ii.Tier 1 capital must be at least 8.5% of RWA.
- iii.Total capital, calculated as sum of Tier 1 capital and Tier 2 capital, must be at least 10.5% of RWA.