Optimal Regulatory Capital definition
Optimal Regulatory Capital means at any date, with respect to either the Chilean Bank or the Colombian Bank, as the case may be, (a) the higher of (i) 120% of the minimum regulatory Capital Ratio required by applicable Law of the applicable country and (ii) the average regulatory Capital Ratio of the three largest privately-owned banks (excluding the Chilean Bank and/or the Colombian Bank) (measured in terms of assets) in Chile or Colombia, as the case may be, in each case as of the last day of the most recent fiscal year multiplied by (b) the risk-weighted assets (including any risk-weighted assets of Subsidiaries that are consolidated for purposes of calculating minimum regulatory Capital Ratio in such country) of the Chilean Bank or the Colombian Bank, as the case may be, as of the date one year from the last day of the most recent fiscal year assuming that such risk-weighted assets grow during such year at a rate equal to the Minimum Growth Rate. For purposes of illustration, an example of the calculation of Optimal Regulatory Capital as of the date of this Agreement is set forth on Exhibit C.
Optimal Regulatory Capital means at any date, with respect to the Company, (a) the higher of (i) 120% of the minimum regulatory Capital Ratio required by Applicable Law of Chile and (ii) the average regulatory Capital Ratio of the three largest privately-owned banks (excluding the Company) (measured in terms of assets) in Chile, in each case as of the last day of the most recent fiscal year multiplied by (b) the risk-weighted assets (including any risk-weighted assets of Subsidiaries that are consolidated for purposes of calculating minimum regulatory Capital Ratio in Chile) of the Company as of the date one year from the last day of the most recent fiscal year assuming that such risk-weighted assets grow during such year at a rate equal to the Minimum Growth Rate. For purposes of this definition of Optimal Regulatory Capital, (I) “Capital Ratio” means, on any date with respect to a regulated bank in Chile, the percentage represented by the ratio of such bank’s (a) regulatory capital required by Applicable Law of Chile to (b) risk-weighted assets (including any risk-weighted assets of its Subsidiaries that are consolidated for purposes of calculating minimum regulatory capital ratio in Chile) of such bank; (II) “Minimum Growth Rate” for any year means the minimum growth rate of the total assets of the Company (determined in accordance with the International Financial Reporting Standards issued by the IASB as applied by the SBIF) for Chile determined in good faith by the Board of the Company (but in no event exceeding Forecasted System Growth in Chile for such year) reasonably necessary to maintain the market share of the Company (measured in terms of assets in
Optimal Regulatory Capital means at any date, with respect to either the Chilean Bank or the Colombian Bank, as the case may be, (a) the higher of (i) 120% of the minimum regulatory Capital Ratio required by applicable Law of the applicable country and (ii) the average regulatory Capital Ratio of the three largest privately-owned banks (excluding the Chilean Bank and/or the Colombian Bank) (measured in terms of assets) in Chile or Colombia, as the case may be, in each case as of the last day of the most recent fiscal year multiplied by (b) the risk-weighted assets (including any risk-weighted assets of Subsidiaries that are consolidated for purposes of calculating minimum regulatory Capital Ratio in such country) of the Chilean Bank or the Colombian Bank, as the case may be, as of the date one year from the last day of the most recent fiscal year assuming that such risk- weighted assets grow during such year at a rate equal to the Minimum Growth Rate. For purposes of illustration, an example of the calculation of Optimal Regulatory Capital as of the date of this Agreement is set forth on Exhibit C.
More Definitions of Optimal Regulatory Capital
Optimal Regulatory Capital means at any date, with respect to the Company, (a) the higher of (i) 120% of the minimum regulatory Capital Ratio required by Applicable Law of Chile and (ii) the average regulatory Capital Ratio of the three largest privately-owned banks (excluding the Company) (measured in terms of assets) in Chile, in each case as of the last day of the most recent fiscal year multiplied by (b) the risk-weighted assets (including any risk-weighted assets of Subsidiaries that are consolidated for purposes of calculating minimum regulatory Capital Ratio in Chile) of the Company as of the date one year from the last day of the most recent fiscal year assuming that such risk-weighted assets grow during such year at a rate equal to the Minimum Growth Rate. For purposes of this definition of Optimal Regulatory Capital, (I) "Capital Ratio" means, on any date with respect to a regulated bank in Chile, the percentage represented by the ratio of such bank's (a) regulatory capital required by Applicable Law of Chile to (b) risk-weighted assets (including any risk-weighted assets of its Subsidiaries that are consolidated for purposes of calculating minimum regulatory capital ratio in Chile) of such bank; (II) "Minimum Growth Rate" for any year means the minimum growth rate of the total assets of the Company (determined in accordance with the International Financial Reporting Standards issued by the IASB as applied by the SBIF) for Chile determined in good faith by the Board of the Company (but in no event exceeding Forecasted System Growth in Chile for such year) reasonably necessary to maintain the market share of the Company (measured in terms of assets in Chile) as of the last day of the immediately preceding year; (III) "Forecasted System Growth" means for any year (i) the Average Asset Growth Multiple multiplied by (ii) the forecasted growth of the nominal gross domestic product for Chile for such year, as forecasted by the International Monetary Fund in the World Economic Outlook (published in October of the preceding year); and (IV) "Average Asset Growth Multiple" means for any year: (a) the average of the annual growth rate of the aggregate consolidated total assets of the three (3) largest privately-owned banks (measured in terms of total assets) in Chile (excluding the Company), in each of the three full years immediately preceding such year published by the Chilean Superintendencia de Bancos e Instituciones Financieras, divided by (b) the average of the annual growth ra...
Optimal Regulatory Capital means at any date, with respect to either the Chilean Bank or the Colombian Bank, as the case may be,