巴三Common Equity Capital 是不是要至少为rwa的6%+2.5%才达标

问题如下：

Thrift Bank carries risk-weighted assets (RWA) of $100.0 billion. In regard to its eligible regulatory capital, the bank holds:

• $5.0billion of Common Equity Tier 1 Capital (“Core Toer 1”)

• $2.0billion of Additional Tier1 Capital

• $3.5billion of Tier 2 Capital (“Gone concern”)

Does Thrift Bank meet the Basel III capital requirements?

选项：

A.

Yes, because its Total Capital Ratio of 10.5% is sufficient

B.

No, because it does not hold enough Common Equity Capital

C.

No, because its Tier 1 Capital Ratio is insufficient

D.

No, because the bank has no buffer-quality capital to contribute to its Capital Conservation Buffer

解释：

No, because it does not hold enough Common Equity Capital

The minimum Common Equity Capital Ratio is 4.5% but the Capital Conservation Buffer (which requires Common Equity) is 2.5%, such that the “Minimum common equity plus capital conservation buffer” is 7.0%.

In regard to (C), the Minimum Tier 1 Capital Ratio is 6.0%

In regard to (D), the Tier 1 Capital Requirement is 6.0%, and the bank has 7.0%, which implies that 1.0% is available toward the Conservation buffer (but it needs 2.5%).

Plase note: The Capital Conservation Buffer must be Common Equity Tier 1 and “Common Equity Tier 1 must first be used to meet the minimum capital requirements (including the 6% Tier 1 and 8% Total capital requirements if necessary), before the remainder can contribute to the capital conservation buffer.”