BANK 3.2.7 Regulatory capital

(1) The regulatory capital of a firm is the sum of its tier 1 capital and tier 2 capital.
(2) Tier 1 capital is the sum of a firm's CET 1 capital and additional tier 1 capital. Tier 1 capital is also known as going-concern capital because it is meant to absorb losses while the firm is viable.

Note For the elements of CET 1 capital and additional tier 1 capital — see rules 3.2.8 and 3.2.10.
(3) Tier 2 capital is the sum of the elements set out in rule 3.2.12. Tier 2 capital is also known as gone-concern capital because it is meant to absorb losses after the firm ceases to be viable.
(4) For these rules, the 3 categories of regulatory capital are CET 1 capital, additional tier 1 capital and tier 2 capital.
Derived from QFCRA RM/2014-2 (as from 1st January 2015).