EU Capital Requirements Regulation (Regulation (EU) No 575/2013) 92: Meet the 4.5 %, 6 % and 8 % capital ratios at all times, with the total risk exposure amount floored at 72.5 % of the standardised amount

What does 92 require?

Institutions must at all times hold a Common Equity Tier 1 ratio of 4.5 %, a Tier 1 ratio of 6 %, a total capital ratio of 8 % and a leverage ratio of 3 %, each ratio expressed against the total risk exposure amount. The total risk exposure amount is the higher of the un-floored amount (credit, counterparty and dilution risk, trading book market risk and large exposure excess, foreign exchange and commodity risk, settlement risk, CVA risk and operational risk) and 72.5 % of the amount calculated using only standardised approaches; transitional factors apply from 50 % in 2025 to 70 % in 2029 (55 % in 2026), with further transitional reliefs to 2032. A Member State may exempt subsidiaries of a domestic parent that applies the floor on a consolidated basis.