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Article (9): Transitional Arrangements

C 52/2017 Effective from 23/2/2017
  1. For the purpose of the value calculation of the following items:
     
    1. Regulatory adjustments referred to in Article 4.1 of these Regulations; and
    2. Capital issued from a subsidiary, also referred to as minority interest;
       

    banks must apply the following percentages:

    1. a) 80% for the time period from 1st January 2017 to 31st December 2017;
       
    2. b) 100% for the time period starting from 1st January 2018.
       
  2. Capital instruments that no longer qualify as non-common equity Tier 1 capital or Tier 2 capital will be phased out over a time horizon of 10 years, starting from 1st January 2017. The detailed phasing out rules of such capital instruments will be set out in the Standards.
     
  3. Capital instruments included in CET1 that do not meet the requirements of these Regulations will be excluded from CET1 starting from 31st December 2017.
     
  4. Table 2: Minimum Transitional Arrangements:
     
Table 2: Minimum Transitional Arrangements
Capital ElementBasel II 2016Basel III 2017Basel III 2018Basel III 2019
Minimum Common Equity Tier 1 Ratio-7.0%7.0%7.0%
Minimum Tier 1 Capital Ratio8.0%8.5%8.5%8.5%
Minimum Capital Adequacy Ratio12.0%10.5%10.5%10.5%
Capital Conservation Buffer-1.25%1.875%2.5%
Domestic Systemically Important Banks Buffer; in percentage of individual capital surcharge-50%75%100%
Countercyclical buffer--0% 1.25%-0% 1.875%2.5%-0%