Pillar 1 - Minimum Capital Requirements

Pillar 1 sets the quantitative capital standards banks must meet, requiring them to hold a minimum amount of Tier 1 and total capital equal to a percentage of risk-weighted assets. It defines the risk categories-credit, market, operational and other risks-and prescribes the formulas for calculating the corresponding risk weights and capital buffers. Compliance ensures banks maintain sufficient loss-absorbing capacity under normal and stressed conditions.