BANK 3.2.1 Introduction

(1) A banking business firm is expected to meet minimum risk-based capital requirements for exposure to credit risk, market risk and operational risk. The firm's capital adequacy ratios (consisting of CET 1 ratio, total tier 1 ratio and total capital ratio) are calculated by dividing its regulatory capital by total risk-weighted assets.
(2) Total risk-weighted assets of a banking business firm is the sum of:
(a) the firm's risk-weighted on-balance-sheet and off-balance-sheet items calculated in accordance with Part 4.4; and
(b) 12.5 times the sum of the firm's market and operational risk capital requirements (to the extent that each of those requirements applies to the firm).
Note For how to calculate the firm’s market risk and operational risk capital requirements, see rule 6.1.1(3) and Part 7.4, respectively.
(3) In this Part:

consolidated subsidiary, of a banking business firm, means:
(a) a subsidiary of the firm; or
(b) a subsidiary of a subsidiary of the firm.
Amended by QFCRA RM/2015-1 (as from 1st July 2015).
Amended by QFCRA RM/2020-2 (as from 1st January 2021)