This chapter describes transitional arrangements for the output floor.
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% |
|
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).