2

Capital Conservation Buffer

2.1

A firm must calculate a capital conservation buffer of common equity tier 1 capital equal to 2.5% of its total risk exposure amount.

[Note: Art 129(1) (part) of the CRD]

2.2

This rule modifies 2.1 for a transitional period between 1 January 2016 and 31 December 2018:

  1. (1) from 1 January 2016 until 31 December 2016 for 2.5% there is substituted 0.625%;
  2. (2) from 1 January 2017 until 31 December 2017 for 2.5% there is substituted 1.25%; and
  3. (3) from 1 January 2018 until 31 December 2018 for 2.5% there is substituted 1.875%.

[Note: Art 160(1) to (5) (part) of the CRD]