• CA-2.2 CA-2.2 Limits on the use of Different Forms of Capital

    • CA-2.2.1

      Tier 1 capital should represent at least half of the total eligible capital, i.e., Tier 2 capital is limited to the 100% of Tier 1 capital. Subordinated term capital instruments are limited to a maximum of 50% of Tier 1 capital.

      Amended: October 2013
      Apr 08

    • CA-2.2.2

      The limit on Tier 2 capital is based on the amount of Tier 1 capital after all deductions of investments pursuant to Prudential Consolidation and Deduction Requirements Module (see Appendix PCD-2 of PCD module for an example of the deduction effects and the caps).

      Apr 08