Regulatory Alerts2022-05-17
Basel III BS2A Draft for Consultation: Standardised Approach Capital Methodology
The Reserve Bank of New Zealand issued this draft document to establish the methodology for locally incorporated registered banks using the standardised approach to calculate capital requirements. It defines total regulatory capital as the sum of Common Equity Tier 1, Additional Tier 1, and Tier 2 capital, specifying strict eligibility criteria and mandatory deductions for each category. The framework further details consolidation rules for banking groups and solo calculations, alongside specific provisions for the treatment of legacy instruments and reciprocal cross-holdings.
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