This chapter describes transitional arrangements for the output floor.

This is a future version
Effective as of: 01 Jan 2023 | Last update: 27 Mar 2020
Status: Forthcoming (View changes)
This version will be out of force as of 01 Jan 2028
90.1

The output floor will be implemented as of 1 January 2023, based on the following calibration phase-in arrangement:

Phase-in arrangements for output floor

Table 1

Date

Calibration

1 January 2023

50%

1 January 2024

55%

1 January 2025

60%

1 January 2026

65%

1 January 2027

70%

1 January 2028

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).