BANK 3.2.8 Common equity tier 1 capital

Common equity tier 1 capital (or CET 1 capital) is the sum of the following elements:

(a) common shares issued by a banking business firm that satisfy the criteria in rule 3.2.9 for classification as common shares (or the equivalent for non-joint stock companies);
(b) share premium resulting from the issue of instruments included in CET 1 capital;

Note Share premium is also known as stock surplus and constitutes additional paid-in capital.
(c) retained earnings;
(d) accumulated other comprehensive income and other disclosed reserves (for example, the foreign currency translation reserve mentioned in rule 6.2.2 (4));
(e) common shares, issued by a consolidated subsidiary of the firm and held by third parties, that satisfy the criteria in rule 3.2.16 for inclusion in CET 1 capital;
(f) regulatory adjustments applied in the calculation of CET 1 capital in accordance with Division 3.2.D.
Note Retained earnings and other comprehensive income include appropriated profit or loss.
Amended by QFCRA RM/2015-3 (as from 1st January 2016).