Version date: 1 June 2011 - onwards
Annex 3 Minority interest illustrative example
This Annex illustrates the treatment of minority interest and other capital issued out of subsidiaries to third parties, which is set out in paragraphs 62 to 64.
Illustrative example
A banking group consists of two legal entities that are both banks. Bank P is the parent and Bank S is the subsidiary and their unconsolidated balance sheets are set out below.
Bank P balance sheet |
Bank S balance sheet |
||
---|---|---|---|
Assets |
Assets |
||
Loans to customers |
100 |
Loans to customers |
150 |
Investment in CET1 of Bank S |
7 |
||
Investment in the AT1 of Bank S |
4 |
||
Investment in the T2 of Bank S |
2 |
||
Liabilities and equity |