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Version date: 1 January 2023 - onwards
Version 3 of 3

RBC20 Calculation of minimum risk-based capital requirements (paras. 20.1-20.18) (effective as of 1 January 2028)

Minimum risk-based capital requirements

20.1 Banks must meet the following requirements at all times:

(1) Common Equity Tier 1 must be at least 4.5% of risk-weighted assets (RWA).

(2) Tier 1 capital must be at least 6% of RWA.

(3) Total capital must be at least 8.0% of RWA [In addition, a Common Equity Tier 1 capital conservation buffer is set at 2.5% of RWA for all banks. Banks may also be subject to a countercyclical capital buffer or higher loss absorbency requirements for systemically important banks. These buffers are described in RBC30 and RBC40.].

20.2 The components of capital referred to in RBC20.1 are defined in CAP10 and must be used net of regulatory adjustments (defined in CAP30) and subject to the transitional arrangements in CAP90. RWA are defined in RBC20.3 and RBC20.4.

Risk-weighted assets