Entire Section

  • Minority Interests that Qualify for Inclusion in Consolidated CET1 Capital

    • PIB 3.16.1

      Minority interests must include the CET1 Capital instruments, plus the related retained earnings and share premium accounts, of a Subsidiary only where all of the following conditions are met:

      (a) the Subsidiary is one of the following:
      (i) an Authorised Firm; or
      (ii) a regulated entity,
      (b) the Subsidiary is a member of the Financial Group and included in the scope of consolidated supervision in accordance with PIB chapter 8; and
      (c) those CET1 Capital instruments are owned by persons other than the Undertakings included in the Financial Group.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB 3.16.2

      Minority interests that are funded directly or indirectly, through a special purpose entity or otherwise, by the Parent of the Authorised Firm or any member of its Financial Group must not qualify for inclusion in the consolidated CET1 Capital of the Financial Group.

      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB 3.16.3

      An Authorised Firm must determine the amount of minority interests of a Subsidiary that is eligible for inclusion in its consolidated CET1 Capital by subtracting from the minority interests of that Subsidiary the result of multiplying the amount referred to in (a) by the percentage referred to in (b):

      (a) the CET1 Capital of the Subsidiary minus the lesser of the following:
      (i) the amount of CET1 Capital of that Subsidiary required to meet the sum of the Subsidiary's CET1 Capital requirement (on a solo basis) of 60% of the Risk Capital Requirement and its Capital Conservation Buffer requirement of 25% of the Risk Capital Requirement; or
      (ii) the amount of consolidated CET1 Capital that relates to that Subsidiary that is required on a consolidated basis to meet the sum of its Financial Group's CET1 Capital requirement of 60% of the Risk Capital Requirement and its Capital Conservation Buffer requirement of 25% of the Risk Capital Requirement;
      (b) the minority interests of the Subsidiary expressed as a percentage of all CET1 Capital instruments of that Undertaking plus the related retained earnings and share premium accounts.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]