Chapter 2 – Banking Regulation and Capital

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