Regulatory Alerts2024-01-01
Capital Guidelines 2024
The Registrar of Financial Institutions issued the Capital Guidelines 2024 to prescribe regulatory capital requirements for banks and bank holding companies, ensuring they maintain adequate high-quality capital buffers to absorb financial shocks and protect depositors. The framework mandates minimum capital ratios of 8.5 percent for Common Equity Tier 1, 10.0 percent for Tier 1, and 15.0 percent for Total Capital, while detailing strict eligibility criteria for qualifying instruments across all three capital tiers. Reporting institutions must apply comprehensive regulatory adjustments and deductions to their capital calculations, specifically targeting goodwill, intangible assets, deferred tax assets, and significant investments in unconsolidated financial entities.