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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)