(1) The appropriate regulator must apply the capital conservation buffer in accordance with the following transitional provisions.

(2) In 2016, the capital conservation buffer must consist of common equity tier 1 capital equal to 0.625% of the total of the risk-weighted exposure amounts of an institution.

(3) In 2017, the capital conservation buffer must consist of common equity tier 1 capital equal to 1.25% of the total of the risk-weighted exposure amounts of an institution.

(4) In 2018, the capital conservation buffer must consist of common equity tier 1 capital equal to 1.875% of the total of the risk-weighted exposure amounts of an institution.

(5) The risk weighted exposure amounts of an institution must be calculated in accordance with Article 92(3) of the capital requirements regulation.