Chapter 2 – Banking Regulation and Capital

Capital and its Components

Element of Tier-I Capital

  • Common Equity Tier-I Capital
  • Paid-up capital (Ordinary Shares), Statutory Reserves and Other Disclosed Free Reserve
  • Stock Surplus(Share Premium) from the issue of Common Shares
  • Capital Reserves Representing Surplus arising out of Sale Proceeds of Assets
  • Revalution Reserve, at Discount of 55 %

Additional Tier-I Capital

  • Perpetual Non-Cumulative Preferance Shares (PNCPS)
  • Stock Surplus(Share Premum) resulting from the issue of instruments included in Additional Tier-I capital
  • Debt Capital Instruments

Element of Tier-II Capital

  • General Provision and Loss Reserves
  • Hybrid Debt Capital Instruments
    • Perpetual Cumulative Preference Share(PCNC)
    • Redeemable Non-Cumulative Preference Share(RNCPS)
    • Redeemable Cumulative Preference Share(RCPS)
  • Investment Reserve
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