CA-2.3 CA-2.3 Limits on the use of different forms of capital
CA-2.3.1
The following constraints apply to the CAR calculations:
Constraint 1: Tier 2 capital allocated to credit risk (see Section A20.7 of guidelines in Appendix BR-3)
should be less than or equal to
50% of the Tier 1 capital allocated to credit risk (see Section A20.6 of guidelines in Appendix BR-3)Constraint 2: Tier 2 capital allocated to market risk (see Section A20.13 of guidelines in Appendix BR-3) plus Tier 2 capital allocated to credit risk (see Section A20.7 of guidelines in Appendix BR-3)
should be less than or equal to
Total Tier 1 capital available (see Section A20.1 of guidelines in Appendix BR-3)October 07
