This chapter describes transitional arrangements for the output floor.

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Effective as of: 01 Jan 2022 | Last update: 15 Dec 2019
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90.1

The output floor will be implemented as of 1 January 2022, based on the following calibration phase-in arrangement:

Phase-in arrangements for output floor

Table 1

Date

Calibration

1 January 2022

50%

1 January 2023

55%

1 January 2024

60%

1 January 2025

65%

1 January 2026

70%

1 January 2027

72.5%

90.2

During the phase-in period, supervisors may exercise national discretion to cap the incremental increase in a bank’s total risk-weighted assets (RWA) that results from the application of the floor. This transitional cap will be set at 25% of a bank’s RWA before the application of the floor. In the example shown in RBC20.13, the application of this national discretion by the supervisor would cap the bank’s RWA to 95 (ie a 25% increase of its pre-floor RWA of 76).