Finalized Guidance Document Concerning the Implementation of Basel III

A Summary of Components of Capital Total regulatory capital will consist of the sum of the following elements: • Tier 1 Capital (going-concern capital) a. Common Equity Tier 1Capital b. Additional Tier 1Capital • Tier 2 Capital For each of the three categories above (Tier-1-a, Tier-1-b and Tier-2 capital) there are sets of criteria that instruments are required to meet before inclusion in the relevant category. (Refer to attachment # 2 to 4 ). Limits and minima All elements above are net of the associated regulatory adjustments and are subject to the following restrictions (see also Annex 1 ): • Common Equity Tier 1 must be at least 4.5% of risk-weighted assets at all times. • Tier 1 Capital must be at least 6.0% of risk-weighted assets at all times. • Total Capital (Tier 1 Capital plus Tier 2 Capital) must be at least 8.0% of risk weighted assets at all times. 2.2 Details on Components of Regulatory Capital