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  • CA-1.5 CA-1.5 Summary of overall capital adequacy requirement

    • CA-1.5.1

      Each bank is expected to monitor and report the level of risk against which a capital requirement is to be applied, in accordance with section CA-1.3 above. The bank's overall minimum capital requirement will be:

      The credit risk requirements laid down by the Agency, excluding debt and equity securities in the trading book and all positions in commodities, but including the credit counterparty risk on all over-the-counter derivatives whether in the trading or the banking books: PLUS one of the following:

      (a) The capital charges for market risks calculated according to the measurement frameworks described in chapters CA-4 to CA-8, summed arithmetically: OR
      (b) The measure of market risk derived from the models approach set out in chapter CA-9 (with the prior written approval of the Agency for adopting this approach — see chapter CA-9); OR
      (c) A mixture of (a) and (b) above, summed arithmetically (with the prior written approval of the Agency for adopting a combination of the standardised approach and the internal models approach — see chapter CA-9).