Regulatory Alerts2024-07-30
Added · Updated
Prudential Standard on Capital Measurement Basel II/III Definition of Capital and Pillar I Framework
The Eastern Caribbean Central Bank issued this standard to establish a comprehensive capital measurement framework for Licensed Financial Institutions in the ECCU under the Banking Act 2015. It defines qualifying capital components, including Common Equity Tier 1 and Additional Tier 1, while mandating minimum regulatory ratios of 8 percent for total capital adequacy, 6 percent for Tier 1, and 4.5 percent for Common Equity Tier 1 relative to risk-weighted assets. The framework further specifies standardized capital charge methodologies for credit, market, and operational risks, ensuring institutions maintain sufficient buffers to absorb losses during periods of stress.
More like this from ECCB
We email you every new ECCB publication the day it's published.