X1PART TWOF1OWN FUNDS AND ELIGIBLE LIABILITIES

Annotations:

TITLE IELEMENTS OF OWN FUNDS

CHAPTER 2Common Equity Tier 1 capital

Section 3Deductions from Common Equity Tier 1 items, exemptions and alternatives

Sub-Section 1Deductions from Common Equity Tier 1 items

Article 44Deduction of holdings of Common Equity Tier 1 instruments of financial sector entities and where an institution has a reciprocal cross holding designed artificially to inflate own funds

Institutions shall make the deductions referred to in points (g), (h) and (i) of Article 36(1) in accordance with the following:

  1. (a)

    holdings of Common Equity Tier 1 instruments and other capital instruments of financial sector entities shall be calculated on the basis of the gross long positions;

  2. (b)

    Tier 1 own-fund insurance items shall be treated as holdings of Common Equity Tier 1 instruments for the purposes of deduction.