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CA-2.2.1

CAR components and CARs outlined in Paragraph CA-B.2.1 must meet or exceed the following minimum ratios on a consolidated basis relative to total risk-weighted assets:

(a) CET1 must be at least 6.5% of risk-weighted assets at all times;
(b) T1 Capital must be at least 8% of risk-weighted assets at all times;
(c) Total Capital (T1 Capital plus T2 Capital) must be at least 10% of risk-weighted assets at all times;
(d) In addition, Islamic bank licensees must meet the minimum Capital Conservation Buffer (CCB) requirement of 2.5% of risk-weighted assets. The CCB must be composed of CET1 and so this gives an aggregate 9% CET1 including the CCB minimum capital requirement;
(e) A minimum 10.5% T1 Capital Adequacy Ratio including the above CCB requirement; and
(f) A 12.5% minimum Total Capital Adequacy Ratio including the above CCB requirement.
January 2015