The following outlines our potential issuance requirements, in consideration of future capital developments.
Illustrative future loss absorbency requirements(1)
Scaled to Minimum Requirements for Own Funds and Eligible Liabilities (“MREL”) based on Bank of England Consultation (2)
(1) Assumes PRA buffer (Pillar 2B) not being in excess of Systemic Risk / G-SIB & Capital Conservation Buffer and no material Counter Cyclical Buffer. Requirements expected to change over time.
(2) Based on RBS interpretation of the BoE’ consultation published on 11 December 2015. MREL policy and requirements remain subject to further consultation. RBS estimated requirements remain subject to change. Please refer to the Risk Factors and other disclosure, in the 2015 20-F and H1 Interim Results.
(3) G-SIB requirement currently 1.5%, will reduce to 1.0% on 1 Jan 2017.
(4) Based on twice Pillar 1 and Pillar 2A at a total capital level, subject to regulatory discretion.
(5) Pillar 2A requirement held constant over the period for illustration purposes. Requirement is expected to vary over time and is subject to at least annual review. Following our changes to pension accounting, response to amendments to IFRIC 14 and associated scheme contributions, RBS anticipates a reduction in it’s future core capital requirements. This will depend on the PRA’s assessment of RBS’s capital position in future.
(6) Total Loss Absorbing Capacity requirements for G-SIB’s.