Capital is measured net of the regulatory adjustments, mostly applied to CET1 (CAP30.1). The bank must deduct goodwill and other intangibles, including goodwill in the valuation of significant investments outside the regulatory consolidation, with mortgage servicing rights treated under the threshold rules (CAP30.7); deduct deferred tax assets that rely on future profitability, netting deferred tax liabilities only where the same tax authority permits offset (CAP30.9); derecognise the cash flow hedge reserve relating to items not fair valued (CAP30.11); deduct any shortfall of eligible provisions against IRB expected loss (CAP30.13); deduct gains on sale from securitisation (CAP30.14); derecognise fair value gains and losses on liabilities and derivative valuation adjustments arising from own credit risk (CAP30.15); deduct defined benefit pension fund net assets, net of associated deferred tax, unless the supervisor allows offset with assets the bank can access without restriction (CAP30.16 to 30.17); deduct holdings of own CET1, AT1 and Tier 2 (and, for G-SIB resolution entities, own other TLAC) (CAP30.18 to 30.20); deduct reciprocal cross-holdings in full (CAP30.21); deduct non-significant investments in unconsolidated financial and insurance entities above 10% of CET1 by the corresponding deduction approach (CAP30.22 to 30.26), with the TLAC holding rules of CAP30.23 to 30.25; deduct significant investments in non-common capital in full (CAP30.29 to 30.30); and recognise significant common share investments, mortgage servicing rights and temporary-difference deferred tax assets only up to 10% of CET1 each and 15% in aggregate, deducting the excess (CAP30.32 to 30.33).
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.