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Article (2): Quantitative Requirements

C 52/2017 Effective from 23/2/2017
  1. Total regulatory capital comprises the sum of the following items:
     
    1. Tier 1 capital, composed of
      1. Common Equity Tier 1 (CET1) and
      2. Additional Tier 1 (AT1);
    2. Tier 2 capital.
       
  2. All regulatory capital components referred to in Article 2.1 are net of regulatory adjustments. A bank must comply with the following minimum requirements, at all times:
     
    1. CET1 must be at least 7.0% of risk weighted assets (RWA);
       
    2. Tier 1 Capital must be at least 8.5% of RWA;
       
    3. Total Capital, calculated as the sum of Tier 1 Capital and Tier 2 Capital, must be at least 10.5% of RWA.
       
  3. Based on the outcome of the Supervisory Review and Evaluation Process conducted by the Central Bank, a bank may be subject to an additional capital add-on, also referred to as individual supervisory capital guidance requirement (SCG). Banks concerned must comply with the individual SCG requirement, set by the Central Bank