My first Publication ocbc_ar17_fullreport_english | Page 85

to be non-viable, and will be gradually phased out under MAS’ Basel III transitional rules. As per the requirements of MAS Notice 637,
OCBC’s insurance subsidiaries were not consolidated for the computation of the capital adequacy ratios, i.e. capital investments in
these insurance subsidiaries were deducted from OCBC’s capital and their assets were excluded from the computation of OCBC’s
risk-weighted assets.
A description of the key terms and conditions of the regulatory capital instruments can be found in Notes 13, 16 and 21 of the
financial statements, and the approaches adopted by OCBC for the computation of risk-weighted assets can be found in the
“Pillar 3 Disclosures” chapter.
$ million Basel III
2017 Basel III
2016
Tier 1 Capital
Ordinary shares
Disclosed reserves/others
Regulatory adjustments
Common Equity Tier 1 Capital 14,136
18,130
(5,359)
26,907 14,107
21,586
(6,550)
29,143
Additional Tier 1 capital
Regulatory adjustments
Tier 1 Capital 2,985
(932)
28,960 3,109
(2,284)
29,968
Tier 2 capital
Regulatory adjustments
Total Eligible Capital 4,673
(408)
33,225 6,087
(2,080)
33,975
163,361
16,130
13,591
193,082 164,320
20,186
13,257
197,763
13.9%
14.9%
17.2% 14.7%
15.1%
17.1%
Credit
Market
Operational
Risk Weighted Assets
Capital Adequacy Ratios
Common Equity Tier 1
Tier 1
Total
The Group’s fully phased-in CET1 CAR as of 31 December 2017 based on MAS Notice 637 rules effective 31 December 2017 was 13.1%.
OCBC’s banking and insurance subsidiaries are subject to capital adequacy requirements of the jurisdiction in which they operate.
As of 31 December 2017, the capital adequacy ratios of these subsidiaries were above their respective local requirements.
DISCLOSURES REQUIRED UNDER PART XIA OF MAS NOTICE 637 ‘NOTICE OF RISK BASED
CAPITAL ADEQUACY REQUIREMENTS FOR BANKS INCORPORATED IN SINGAPORE’
(This section does not form part of OCBC’s audited financial statements)
The Basel Committee has developed an indicator-based measurement approach to identify Global Systemically Important Bank
(“G-SIB”) and determine the higher loss absorbency requirements for banks classified as G-SIBs. While OCBC is not a G-SIB, it is required
under MAS Notice 637 to disclose the indicators which can be found on the Bank’s Investor Relations website (http://www.ocbc.com/
group/investors/Cap_and_Reg_Disclosures.html).
BUILDING ON OUR CORPORATE STRATEGY FOR SUSTAINABLE GROWTH
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