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Article (4): Regulatory Adjustments

C 52/2017 Effective from 23/2/2017
  1. The following regulatory adjustments must be applied to CET1 capital:
     
    1. Goodwill and other intangibles;
       
    2. Deferred tax assets;
       
    3. Cash Flow hedge reserve;
       
    4. Gain on sale related to securitization transactions;
       
    5. Cumulative gains and losses due to changes in own credit risk on fair valued financial liabilities;
       
    6. Defined benefit pension fund assets and liabilities;
       
    7. Investments in own shares, or treasury stock;
       
    8. Reciprocal cross holdings in the capital of banking, financial and insurance entities;
       
    9. Investments in the capital of banking, financial and insurance entities, that are outside the scope of regulatory consolidation and where the bank does not own more than 10% of the issued common share capital of the entity;
       
    10. Significant investments in capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation;
       
    11. Threshold deductions.
       
  2. For the following items, which under Basel II were deducted 50% from Tier 1 and 50% from Tier 2, or had the option of being deducted or risk weighted, banks must apply a risk weight, which is calculated as the reciprocal of the minimum requirement of the Total Capital.
     
    1. Certain securitization exposures;
       
    2. Non-payment/delivery on non-Delivery-versus-Payment and non-Payment-versus-Payment transactions;
       
    3. Significant investments in commercial entities.