Institutions apply the prudential filters (no gains on securitised assets, cash flow hedge reserve and own credit gains and losses removed, additional value adjustments for prudent valuation) and deduct from Common Equity Tier 1 losses for the year, intangible assets (other than prudently valued software unaffected by resolution), deferred tax assets relying on future profitability, the IRB shortfall of provisions to expected loss, defined benefit pension fund assets, own Common Equity Tier 1 holdings including contingent purchase obligations, reciprocal cross holdings, applicable holdings in financial sector entities above the thresholds, excess Additional Tier 1 deductions, 1 250 % items deducted as an alternative, foreseeable tax charges, the insufficient coverage of non-performing exposures and certain other items. For each non-performing exposure the insufficient coverage deduction is the excess of the minimum coverage (unsecured and secured parts multiplied by factors that rise with the time since the exposure became non-performing) over the specific provisions, value adjustments and other own funds reductions recognised against it. The 10 % and 17.65 % threshold exemptions of Article 48 apply to certain deferred tax assets and significant investments.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.