The definition of capital available to be used for this purpose ... includes qualifying criteria for capital instruments, capital composition limits, and regulatory adjustments and deductions. The definition encompasses capital available within all subsidiaries that are consolidated for the purpose of calculating the MCT ratio
The article isn't always clear when talking about capital available whether they are inclusive or exclusive or deductions and other adjustments. As per the above the Capital Available specified in the paper is after all deductions.
Furthermore, the definition and details of Capital B and Capital C assets: 2.1.2 and 2.1.3 are excluded from the reading. As in previous exams, the only thing they should show is "Category B = #,###, Category C = #,###" and you need to check if it exceeds (Capital Available - AOCI) x Z% (40%, 7% respectively).
Comments
The article isn't always clear when talking about capital available whether they are inclusive or exclusive or deductions and other adjustments. As per the above the Capital Available specified in the paper is after all deductions.
Furthermore, the definition and details of Capital B and Capital C assets: 2.1.2 and 2.1.3 are excluded from the reading. As in previous exams, the only thing they should show is "Category B = #,###, Category C = #,###" and you need to check if it exceeds (Capital Available - AOCI) x Z% (40%, 7% respectively).
Aight that's legit ! thanks Chris