Because SBICs may, under certain conditions, hold investments that exceed the statutory limitations imposed on bank investments in SBICs, the revised proposal would apply the higher marginal capital charges to SBIC investments only when the total amount of these investments exceeds 15 percent of the parent bank or bank holding company's tier 1 capital
From year-end 1990 to March 31, 1992, Citicorp has increased its Tier 1 capital
ratio from 3.
Equity investments through small business investment companies would be exempt from these new capital deduction requirements and would continue to be subject to the same capital requirements that currently apply, unless the value of those investments exceeds 15 percent of the bank's tier 1 capital
2) After excluding interests in private equity funds, 20 percent of the Tier 1 capital
of the financial holding company.
Under the Basle framework, internationally active banks must meet an 8 percent minimum standard by the end of fiscal year 1992, of which at least half must constitute tier 1 capital
In 1991, banks across all size categories made significant progress in increasing risk-based capital ratios, primarily by increasing their tier 1 capital
Parent company Bank of Montreal (BMO) is anticipating that the Office of the Superintendent of Financial Institutions will designate the securities as Innovative Tier 1 capital
for regulatory capital purposes.
Second, tier 1 capital
must equal at least 3 percent of unweighted assets.
Proceeds from the issuance are expected to be used for general corporate purposes, including augmenting Tier 1 capital
following the acquisition of Quaker City Bancorp, Inc.
1 billion and has been accompanied by additional Tier 1 capital
They also, reflect, however, the somewhat low, albeit improving capital, particularly tier 1 capital
, as well as the risks related to the economic slowdown and its regional expansion strategy, which most recently included an investment in Honduras.
The IATS transaction represents the issuance of new Tier 1 capital
, and this will result in a significant strengthening of the company's Tier 1 capital
ratio and Standard & Poor's Canadian capital adequacy ratio," said Standard & Poor's credit analyst Donald Chu.