Examples of CET 1 in a sentence
Adjustments to CET 1 capital must be made in accordance with this Subdivision.
The amount to be remitted/injected and the mix/mode of capital (CET 1 v/s Tier 2) is determined in conjunction with GT, after taking into account local capital adequacy regulations (inclusive of any regulatory buffers), anticipated changes to those regulations, forecast organic growth and Head Office (HO) return expectations.
In the calculation of CET 1 capital, a banking business firm must derecognise all unrealised gains and unrealised losses that have resulted from changes in the fair value of liabilities that are due to changes in the firm’s own credit risk.
In the calculation of CET 1 capital, a banking business firm must derecognise the amount of the cash flow hedge reserve that relates to the hedging of items that are not fair valued on the balance sheet (including projected cash flows).
A banking business firm must deduct from CET 1 capital the amount of its goodwill and other intangible assets (except mortgage servicing rights).
Tier 1 capital is also known as going-concern capital because it is meant to absorb losses while the firm is viable.Note For the elements of CET 1 capital and additional tier 1 capital, see rules 3.2.8 and 3.2.10.
In the calculation of CET 1 capital, an Islamic banking business firm must derecognise all unrealised gains and unrealised losses that have resulted from changes in the fair value of liabilities that are due to changes in the firm’s own credit risk.
An Islamic banking business firm must deduct from CET 1 capital the amount of its goodwill and other intangible assets (except mortgage servicing rights).
In the calculation of CET 1 capital, an Islamic banking business firm must derecognise the amount of the cash flow hedge reserve that relates to the hedging of items that are not fair-valued on the balance sheet (including projected cash flows).
In the calculation of CET 1 capital, an Islamic banking business firm must derecognise any increase in equity capital or CET 1 capital from a securitisation or resecuritisation transaction (for example, an increase associated with expected future margin income resulting in a gain-on-sale).