Fixed Income Quarterly—Banks
Page 9
Chart 10: Minimum Capital Requirements Comparison
25.0% 20.0% 15.0% 10.0%
5.0% 0.0%
CCB
Bail-in Total Capital
Tier 1 D-SIB
Conservation Buffer
CET1
OSFI Reg.
OSFI Implied CET1: 8%
* 4.5% Min. Requirement
* 2.5% Conservation Buffer * 1.0% D-SIB
CCB
Progressive Component
Systemically Imp. Banks (CoCo) CCB
HLA
Conservation Buffer
CET1
Swiss Reg.
Swiss Implied CET1: 11%
* 4.5% Basel III requirement * 2.5% Conservation Buffer * 3.0% HLA
* 1.0% CCB (2.5% Max.)
CCB
Tier 1 / Tier 2
HLA
Conservation Buffer
CET1
Sweden Reg.
Sweden Implied CET1: 12%
* 4.5% Basel III requirement * 2.5% Conservation Buffer * 5.0% HLA
CCB
Additional PLAC Tier 1 / Tier 2
HLA
Conservation Buffer
CET1
U.K. Reg.
U.K, Implied CET1: 10%
* 4.5% Basel III requirement * 2.5% Conservation Buffer * 3.0% HLA
Note: HLA - Higher Loss Absorbency requirement imposed on systemically important banks; CCB - Counter Cyclical Buffer Source: BIS, FINMA, OSFI, BMO Capital Markets
Chart 11: Estimated Basel III Leverage Ratios - Q1/14
4.0%
3.7%
3.6%
3.5%
3.0%
2.5%
2.0%
3.5%
3.5%
Minimum 3.0%
Total Big 6 CDN Banks
3.4%
3.3%
3.1%
BMO BNS
CM NA RY
TD
As at January 31, 2014
Source: Company Reports, BMO Capital Markets
Leverage %