Conventional bank licensees are required to hold a Capital Conservation Buffer (CCB) of 2.5%, comprised of CET1 above the regulatory minimum Total Capital ratio of 10%.8 Capital distribution constraints will be imposed on a conventional bank licensee when the CCB falls below 2.5%. The constraints imposed only relate to distributions, not the operation of the conventional bank licensee.
8 Common Equity Tier 1 must first be used to meet the minimum capital requirements (including the 8% Tier 1 and 10% Total Capital requirements if necessary), before the remainder can contribute to the capital conservation buffer.
January 2015
