2023-10-26 | CBE3.1.2Added · Updated
The document establishes the Capital Adequacy Standard, defining the composition of Tier 1 and Tier 2 capital for banks, including Common Equity Tier 1 and Additional Tier 1. It mandates specific deductions for intangible assets, deferred tax assets, and investments in financial sector entities, while setting phased-in transition schedules for these deductions from 2014 to 2019. The regulation specifies quantitative thresholds, such as a 10% limit for significant investments in financial entities and a 50% cap on supplementary deposits relative to Tier 1 capital, and outlines the criteria for qualifying instruments and regulatory adjustments.
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