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Guidance

An example of the calculation of the Countercyclical Capital Buffer follows, for an Authorised Person with relevant credit risk exposures in countries A, B and C of 60, 25 and 15 respectively, and where the applicable Countercyclical Capital Buffer rates are 2.0%, 1.0% and 1.5% respectively.

  Rule(s) A B C Total
Countercyclical Capital Buffer rate
- applicable
3.18.8 2.0% 1.0% 1.5%  
Relevant credit risk exposures 3.18.5 and 3.18.7 60 25 15 100
Countercyclical Capital Buffer rate
- weighted
3.18.6 1.20% 0.25% 0.225% 1.675%
Total Risk Exposure Amount 3.5.7(i) 100 60 40 200
Countercyclical Capital Buffer 3.18.4       3.35