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Appendix PCD-4 Full Aggregation

Bank "x" controls a non-resident financial entity "z" (80% shareholding) which is filing its return with the respective supervisor under the Basel II capital adequacy rules. The aggregation of capital and RWAs will be carried out as follows:

Parent Bank:

Eligible regulatory capital = 3,000,00011,

Risk weighted assets = 20,000,000

CAR = 3,000,000/20,000,000

= 15%

Non-resident subsidiary:

Eligible regulatory capital = 1,000,000

Risk weighted assets = 10,000,000

CAR = 1,000,000/10,000,000

= 10%

Consolidated Capital Adequacy Ratio:

Eligible regulatory capital = 4,000,000 (3,000,000+1,000,000)

Risk weighted assets = 30,000,000 (20,000,000+10,000,000)

CAR = 4,000,000/30,000,000

= 13.33%


11 This capital amount is after all necessary deductions, including investment in "z".