Company: HBCYF
Filing Date: 2025-06-02
Form Type: 424B5
Source: 0001193125-25-132352
Chunk: 40

Company: HSBC HOLDINGS PLC
Filing Date: 2025-06-02
Form: 424B5
Chunk 40
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2025, is 2% of risk weighted assets, and may vary from time to time); and (iii) the countercyclical capital buffer S-26

(“CCyB”) (which is a buffer of common equity Tier 1 capital equivalent to the risk weighted assets multiplied by the weighted average of various countercyclical buffer rates that vary
over time depending on the effective rates set by regulators in countries where we have relevant credit exposures – the current UK CCyB rate is 2%). As of March 31, 2025, the HSBC Group’s combined buffer was 5.2% of risk weighted
assets (comprising a CCB, a G-SII and a CCyB buffer of 2.5%, 2.0% and 0.7%, respectively).

In
addition to the Pillar 1 requirements and Pillar 2A requirements and the combined buffer, there are other tools that the PRA and other relevant authorities in the UK have available to them to require UK firms to hold additional capital to address micro-prudential or macro-prudential risks as assessed by the relevant authorities in the UK. For example, the PRA introduced a
firm-specific Pillar 2B buffer (the “PRA buffer”), which is an amount of capital firms should maintain in addition to the total capital requirements (Pillar 1 requirements and Pillar 2A requirements)
and the combined buffer. The PRA buffer absorbs losses which could arise under a severe stress scenario, and is set at a level that the PRA believes will ensure that the firm can continue to meet minimum Pillar 1 requirements and Pillar 2A
requirements as well as to address any significant weaknesses in its risk management and governance. The PRA assesses the PRA buffer applicable to an institution annually (or more often if a firm’s circumstances change). Where the PRA considers
there is an overlap between the combined buffer (excluding systematic buffers like the G-SII buffer) and the PRA buffer, the PRA buffer will be set as the excess capital required over and above the combined
buffer. To the extent the PRA buffer is applicable, it must be met with 100% common equity Tier 1 capital, which will be in addition to the common equity Tier 1 capital used to meet the Pillar 1 requirements, Pillar 2A requirements and combined
buffer requirements.

In addition, “sectoral capital requirements” could be