4.31. Capital Conservation Buffer

(1)       A Bank whose risk-based capital requirement is higher than its base capital requirement must maintain a minimum Capital Conservation Buffer of:

(a)       2.5% of the Bank’s total risk-weighted assets; or

(b)       a higher amount that the AFSA may, by written notice, set from time to time.

(2)       A Bank’s capital conservation buffer must be made up of CET 1 Capital above the amounts used to meet the Bank’s CET 1 Capital ratio, T1 Capital ratio and Total Capital ratio in Rule 4.12.