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) |
October 07