Section 5: Capital conservation buffer

(1) A financial institution shall at all times maintain a capital conservation buffer of 2.5% of the total risk adjusted assets plus risk adjusted off balance sheet items, over and above the minimum on going core capital and total capital requirements prescribed under the Act and these Regulations. (2) The capital conservation buffer shall be met by core capital (Tier 1). (3) For purposes of subregulation (1), the minimum on going core capital and total capital requirements and the capital conservation buffer shall comprise of- (a) a core capital (Tier 1) of not less than 12.5% of total risk adjusted assets plus risk adjusted off balance sheet items of the financial institution; and (b) a total capital of not less than 14.5% of total risk adjusted assets plus risk adjusted off balance sheet items of the financial institution.