Main
>
Legal Framework
>
4.31. Capital Conservation Buffer
FINANCIAL SERVICES LEGISLATION
RULES
BANKING BUSINESS PRUDENTIAL RULES
Initial and ongoing capital requirements
Entire Act

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:

  1. (a) 2.5% of the Bank’s total risk-weighted assets; or
  2. (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.