Regulatory Alerts2014-05-01
Regulatory Capital Transitional Arrangements
The Supervisor of Banks issues transitional provisions to facilitate banking corporations' compliance with Basel III regulatory capital requirements. The directive mandates a phased deduction of specific capital adjustments and deductions from Common Equity Tier 1, progressing from 20 percent in 2014 to full 100 percent deduction by 2018. Additionally, it establishes recognition caps for capital instruments that no longer qualify under new criteria, reducing the allowable inclusion from 80 percent in 2014 to zero percent by 2022.
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