4.13. Total Capital

(1) The Total Capital of a Bank is the sum of its Tier 1 (T1) Capital and Tier 2 (T2) Capital.

(2) T1 Capital is the sum of a Bank’s Common Equity Tier 1 (CET 1) Capital and Additional Tier 1

(AT1) Capital. T1 Capital is also known as going-concern capital because it is meant to absorb losses while the Bank is viable.

(3) T2 Capital is defined in Rule 4.18. T2 Capital is also known as gone-concern capital because it is meant to absorb losses after the Bank ceases to be viable.

(4) For these rules, the 3 categories of Regulatory Capital are CET 1 Capital, AT1 Capital and T2 Capital.