- The capital base of the bank consists of the following 3 types of capital requirements: Tier 1, Tier 2 and Tier 3.
- The total of Tier 2 (supplementary) elements will be limited to a maximum of 100% of the total of Tier 1 capital.
- Subordinated term debt will be limited to a maximum of 50% of Tier 1 capital.
- Tier 3 capital will be limited to 250% of a banku2019s Tier 1 capital that is required to support market risk.
- Shareholderu2019s equity and retained earning consists of Tier 1 capital while supplementary refers to Tier 2 capital.
- The sum of total of Tier 2 and Tier 3 capital should not exceed the total of Tier 1 capital.