Document ID: chunk:federal_register_of_legislation:F2023L00684:body:0:p4
Version: federal_register_of_legislation:F2023L00684
Segment Type: other
Provision Reference: 
Character Range: 7937–10674

of Attachment G to this Prudential Standard and are above the limit specified in paragraph 4 of Attachment G; and
 6. Tier 2 Capital.
that satisfy the criteria in this Prudential Standard.
 1. A regulated institution must ensure that at all times[1]:
 2. the Common Equity Tier 1 Capital for the regulated institution exceeds 60 per cent of the prescribed capital amount of the regulated institution;
 3. the Tier 1 Capital for the regulated institution exceeds 80 per cent of the prescribed capital amount of the regulated institution;
 4. the capital base for the regulated institution exceeds the Prudential Capital Requirement of the regulated institution;
 5. 120 per cent of the net assets for the regulated institution exceeds 60 per cent of the prescribed capital amount of the regulated institution;
 6. the sum of 120 per cent of the net assets and Additional Tier 1 Capital for the regulated institution exceeds 80 per cent of the prescribed capital amount of the regulated institution; and
 7. the sum of 120 per cent of the net assets, the Additional Tier 1 Capital and the Tier 2 Capital for the regulated institution exceeds the Prudential Capital Requirement of the regulated institution.
 8. APRA may require, by notice in writing, a regulated institution to hold a higher percentage of its prescribed capital amount as Common Equity Tier 1 Capital and/or Tier 1 Capital.
 9. A regulated institution must ensure that any item of capital that the regulated institution includes in a particular category of its capital base satisfies, in both form and substance, all requirements in this Prudential Standard for the particular category of capital in which it is included.
10. A regulated institution must not include an item of capital in a particular category of its capital base if that item, when considered in conjunction with other related transactions that affect its overall economic substance, could be reasonably considered not to satisfy the requirements of this Prudential Standard for that category of the capital base.
11. A regulated institution must ensure that the category of the capital base in which a component of capital is included, when measured at Level 1 or equivalent, is not upgraded to a higher category of the capital base when measured in a regulated institution's capital base at Level 2. Any such component of capital must be reclassified to the appropriate lower category of the capital base when measured at Level 2.
12. A regulated institution must not include a capital instrument in a category of the capital base based on a future event[2], until such time as:
13. the future event occurs, and
14. the proceeds have been irrevocably received by the regulated institution.
15. APRA may