Basel III definition of capital - Frequently asked questions (update of FAQs published in October 2011)
The Basel Committee on Banking Supervision has received a number of interpretation questions related to the December 2010 publication of the Basel III regulatory frameworks for capital and liquidity and the 13 January 2011 press release on the loss absorbency of capital at the point of non-viability.
The Committee has reviewed frequently asked questions (FAQs) and today's publication provides answers to these together with technical elaboration of the rules text and interpretative guidance where necessary. These aim to promote consistent global implementation of Basel III.
The FAQs published in this document correspond to the definition of capital sections of the Basel III rules text. These FAQs are in addition to the first set published in July 2011 and the second set published in October 2011. They are grouped according to the relevant paragraphs of the rules text. FAQs that have been added since the publication of the second version of this document are shaded yellow.