BANK 3.2.38 Non-significant investments — aggregate is 10% or more of firm's common equity tier 1 capital

(1) This rule applies if, after applying all other regulatory adjustments, the total of the deductions required to be made under rule 3.2.37 is 10% or more of the firm's CET 1 capital.
(2) A banking business firm must deduct the amount by which the total of the deductions required to be made under rule 3.2.37 exceeds 10% of the firm's CET 1 capital. This amount to be deducted is referred to as the excess.
(3) How much of the excess gets to be deducted from each category of regulatory capital under the corresponding deduction approach is calculated in accordance with the following formula:



A is the amount of CET 1 capital, additional tier 1 capital or tier 2 capital of the banking business firm, as the case requires.

B is the total capital holdings of the firm.
Amended by QFCRA RM/2015-1 (as from 1st July 2015).