SMBC Group's Financial and Credit Portfolio
Application of Basel III (capital ratio)*1
Mar. 24
Mar. 25
Mar. 26
Mar. 27
Mar. 28
Mar. 29
Revised standardized approach and internal ratings-
based framework for credit
Revised credit valuation adjustment (CVA) framework
Implement
RWA
Revised operational risk framework
Output floor
Capital requirements
Total capital ratio
72.5%
70%
65%
60%
55%
50%
Implementation of output floor
A: RWA based on internal ratings-based approach (IRB)
B: RWA based on standardized approach (SA)
Tier 1 ratio
A > B x capital floor
RWA = A
CET1 ratio
Capital
conservation
buffer*2
Common Equity Tier 1 Additional
(CET1)
Tier 2
B x capital floor
Tier 1
A: IRB
B: SA
2.5%
4.5%
1.5%
2.0% 10.5%
A ≤ B x capital floor
RWA = B x capital floor
+
G-SIB surcharge (CET1 capital)
Bucket 1 Bucket 2 Bucket 3
1.0%
Bucket 4
Bucket 5
1.5%
2.0%
2.5%
3.5%
A: IRB
*1 FSA announced that it will postpone the implementation of unimplemented Basel III standards until Mar. 24 for
internationally active backs and bank holding companies including SMFG
*2 Countercyclical buffer (CCYB) omitted
B x capital floor
B: SA
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