• PINS Part 4.7 PINS Part 4.7 Limits on the use of different forms of capital

    Editorial changes (as from 1 January 2015).

    • PINS 4.7 Guidance

      The table in PINS Rule 4.2.2 describes the following terms that are used in this Part:

      a. 'tier 1 capital' is equal to line A in the table;
      b. 'tier 1 capital (net of deductions)' is equal to line C in the table;
      c. 'tier 2 capital' means the sum of line D and line E in the table;
      d. 'lower tier 2 capital' is equal to line E in the table.
      Editorial changes (as from 1 January 2015).

    • PINS 4.7.1 Instruments not to be included in tier 2 capital — exceeding 100% of tier 1 capital

      A capital instrument is not eligible for inclusion in tier 2 capital to the extent that its inclusion will result in the aggregate amount of tier 2 capital exceeding 100% of eligible tier 1 capital (net of deductions).

      Amended by QFCRA RM/2015-3 (as from 1st January 2016).

    • PINS 4.7.2 Instruments not to be included in lower tier 2 capital — exceeding 50% of tier 1 capital

      A capital instrument is not eligible for inclusion in tier 2 capital to the extent that its inclusion will result in the aggregate amount of lower tier 2 capital exceeding 50% of eligible tier 1 capital (net of deductions).

      Amended by QFCRA RM/2015-3 (as from 1st January 2016).