Capital composition limit

EthanDEthanD
edited March 21 in OSFI.MCT

According to 2019 Fall Q19, the capital available used for testing the composition limit includes Cap B and Cap C. But for this battle quiz question, it seems like Cap B and Cap C are not included? I was calculating the limits like this, is it correct?
Cap available: 60,400 - 500 + 15,000 + 4,500 + 7,000 = 86,400
Threshold for Cap B + C: (15,000 + 4,500) / (86,400 - 7,000) = 24.55%
Threshold for Cap C: 4,500 / (86,400 - 7,000) = 5.67%
=> No reduction on capital available.

Comments

  • Staff-T1Staff-T1

    No your calculation is incorrect. You are double counting Cap B and Cap C. Why do you say that Cap B and C are not included in the Gross Capital Available in the Battlequiz question?

  • EthanDEthanD

    Thank you, I wrongly assumed that Cap B and C are not included in the given gross cap available.

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