A. Components of capital

Elements of capital

49. Total regulatory capital will consist of the sum of the following elements:

1. Tier 1 Capital (going-concern capital)

a. Common Equity Tier 1

b. Additional Tier 1

2. Tier 2 Capital (gone-concern capital)

For each of the three categories above (1a, 1b and 2) there is a single set of criteria that instruments are required to meet before inclusion in the relevant category. [As set out in the Committee's August 2010 consultative document, Proposal to ensure the loss absorbency of regulatory capital at the point of non-viability, and as stated in the Committee's 19 October 2010 and 1 December 2010 press releases, the Committee is finalising additional entry criteria for Additional Tier 1 and Tier 2 capital. Once finalised, the additional criteria will be added to this regulatory framework.]

Limits and minima

50. All elements above are net of the associated regulatory adjustments and are subject to the following restrictions (see also Annex 1):

• Common Equity Tier 1 must be at least 4.5% of risk-weighted assets at all times.

• Tier 1 Capital must be at least 6.0% of risk-weighted assets at all times.