Regulatory Alerts2004-01-01
C19/04: Matters relating to the qualifying capital and reserve funds of banks, including hybrid debt instruments
The banking regulator proposes amendments to Section 70 of the Banks Act and Regulation 21 to align domestic capital requirements with international Basel II standards for hybrid debt instruments. The proposal reduces the mandatory primary capital ratio from 75 to 60 percent of the minimum capital-adequacy ratio, establishing a 60:40 primary-to-secondary capital split that formally recognizes hybrid instruments without diluting the primary capital base. Interested parties are invited to submit comments on these legislative changes by 28 February 2005.
Share