Basel I

Tier 1
Capital

Tier 2
Capital

Tier 3
Capital

>
8%

Equity > 2%
Noncumulativ
>
e perpetual
4%
preferred
stock
cumulative perpetual
preferred stock
99-year debentures
subordinated debt
(more than 5 years)

Basel II

>
8%

Equity > 2%
Noncumulativ
>
e perpetual
4%
preferred
stock
cumulative perpetual
preferred stock
99-year debentures
subordinated debt
(more than 5 years)
Short-term
subordinated debt
(between 2 and 5
years)
for market risk only

Basel III

>
10,5%

>
8,5%

Core equity capital > 4,5%

Capital conservation buffer > 2,5%
Additional Tier 1 capital (non-cumulative
preferred stock) > 1,5%

> 2%

Debt subordinated to depositors