Last Updated on 2020-12-13 by Admin
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Common Equity Tier 1 (CET-1)
- Tier 1 (Core) Capital
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- Ordinary Shares
- General Reserves
- Current Year’s Earnings
- Capital Profits Reserve
- Tier 2 (Supplementary) Capital
Common Equity Tier 2 (CET-2)
- Tier 2 (Upper) Capital
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- Perpetual Cumulative Preference Shares
- Perpetual Cumulative Mandatory Convertible Notes
- Tier 2 (Lower) Capital
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- Term Subordinated Debt
- Limited Life Redeemable Shares
Calculations
- Total Risk Weighted Assets (RWA) = Value of Assets x Risk Factor
- Min. Common Equity Tier 1 (CET-1) = Total Risk Weighted Assets (RWA) x 4.5%
- Min. Tier 1 Capital = Total Risk Weighted Assets (RWA) x 6%
- Min. Tier 2 Capital = Total Risk Weighted Assets (RWA) x 2%
- Min. Total Capital (Tier 1 + Tier 2) = Total Risk Weighted Assets (RWA) x 8%
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