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  • Tier 1: Core capital

    • CA-2.2.4

      Tier 1 capital shall consist of the sum of items (a) to (b) below, less the sum of items (c) to (d) below:

      (a) Bank's permanent share capital and disclosed reserves in the form of legal, general and other reserves created by appropriations of retained earnings, share premium, capital redemption reserves and other surplus (as shown in its balance sheet), but excluding revaluation reserves and prudential reserves (profit equalisation reserves and investment risk reserve as defined in the AAOIFI's Financial Accounting Standard No: 11 Provisions and Reserves).

      In case of an Islamic fund having participation and / or 'B' class shares (not carrying voting rights), their treatment as capital or unrestricted investment accounts (for the purpose these regulations) must be agreed with the Central Bank. The Central Bank will consider each case on its merit.
      (b) Minority interests, arising on consolidation, in the equity of subsidiaries that are less than wholly owned.

      LESS:
      (c) Goodwill
      (d) Current year's cumulative net losses which have been reviewed as per the International Standards on Auditing (ISA) by the external auditors.
      October 07