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  • Tier 1: Core Capital

    • CA-2.1.3

      Tier 1 capital shall consist of the sum of items (a) to (e) below, less the sum of items (f) through (j) below:

      (a) Issued and fully paid ordinary shares;

      For Islamic funds with participation and / or "B" class shares (not carrying voting rights), the treatment for the purpose of these regulations must be agreed with the CBB. The CBB will consider each case on its merit.
      (b) Disclosed reserves
      •  General reserves
      •  Legal / statutory reserves
      •  Share premium
      •  Capital redemption reserves
      •  Excluding fair value reserves1
      (c) Retained profit brought forward;
      (d) Unrealized net gains arising from fair valuing equities2; and
      (e) Minority interests in subsidiaries Tier 1 equity, arising on consolidation, in the equity of subsidiaries that are less than wholly owned. Further guidance on minority interests is provided in the Prudential Consolidation and Deduction Requirements Module.

      LESS:

      (f) Goodwill;
      (g) Current interim cumulative net losses;
      (h) Unrealized gross losses arising from fair valuing equity securities3;
      (i) Other deductions made on a pro-rata basis between Tier 1 and Tier 2;
      (j) Reciprocal cross holdings of other banks' capital.

      1 This refers to unrealised fair value gains reported directly in equity (such gross gains are included in Tier 2).

      2This refers to unrealised net fair value gains taken through P&L (which have been audited). Please note that the unrealised net gains related to unlisted equities taken through P&L arising on or after January 1, 2008 will be subject to 55% discount as stated in CA-2.1.4(c)ii.

      3 This refers to both 'net losses taken through P&L' and 'gross losses reported directly in equity'.

      Apr 08