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 |