The regulation on calculation of capital financial institutions responsible for, clearing houses and investment firms Date-1990-06-01-435 Ministry Ministry of finance published in the 1990 422 entry into force 31.03.1991 last edited by-2014-08-22-1103 from 30.09.2014 Change applies to Norway Pursuant LAW-1956-12-07-1-section 1, LAW-1956-12-07-1-§ 4, law-1961-05-24-1-section 2, law-1961-05-24-2-section 21, LAW-2011-11-25-44-section 2-8, LAW-1988-06-10-40-section 2-9, LAW-1988-06-10-40-section 2-9a, LAW-1988-06-10-40-section 2b-2, LAW-1988-06-10-40-section 3-1, FOR-1990-06-15-453, law-2002-07-05-64-section 4-5, LAW-2005-06-10-44-section 6-3, LAW-2007-06-29-75-section 9-15 cf. law-2015-04-10-17-section 23-2 Announced Directed 20.11.2014 (section 20) short title regulations on calculation of primary capital Chapter overview : the main part part A (§ § 2-11) part B (§ § 12-22) legal authority: established by the finance and customs Ministry 1. June 1990 under the legal authority of the Act 10. June 1988 No. 40 about financing business and financial institutions (Finance Act) § 2-9 the second paragraph, section 2-9a, section 2b-2 and § 3-1, law 24. in May 1961, Nr. 2 about the commercial banks section 21, law 24. in May 1961, Nr. 1 about the savings banks section 2, law 10. June 1988 No. 39 about the insurance business section 7-3, law 7. December 1956 No. 1 about the supervision of financial institutions, etc. (financial supervision) section 4, cf. § 1 the second paragraph, Law 19. June 1997 No. 79 on securities trading section 6-2 the second paragraph and section 8-10 the second paragraph.
Added legal authority: law 10. June 2005 Nr. 44 about insurance companies, pension companies and their business, etc. (the Insurance Act) section 6-3. Law 25. November 2011 No. 44 about mutual funds (mutual funds Act) § 2-8. Act 5. July 2002 No. 64 for registration of financial instruments (value paper Registry Act) section 4-5. Law 29. June 2007 No. 75 on securities trading (securities trading Act) § 9-15.
EEA EEA referrals: annex IX Nr. 14 (Directive 2006/48/EC) and no. 31 (Directive 2006/49/EC).
Changes: modified by regulations 22 Oct 1990 No. 875 (entry into force), 26 July 1991 No. 525, 26 June 1992 No. 504, 23 des 1992 Nr. 1202, 17 July 1996 No. 781, 28 nov 1996 Nr. 1132, 7 nov 1997 Nr. 1153, may 10, 1999 No. 562, 11 jan 2000 Nr. 22, 17 Mar 2000 Nr. 276, May 14, 2001, Nr. 501, 28 sep 2001 No. 1113, 22 Dec 2003 Nr. 1770, 20 Dec 2005 Nr. 1602, 14 Dec 2006 Nr. 1507, april 4, 2008 # 339, 18 Dec 2009 Nr. 1726, 20 Dec 2010 No. 1717, 24 jan 2011 No. 69, 21 des 2011 No. 1467, 22 aug 2014 Nr. 1103. Corrections: 05.01.2011 (of the field), 20.11.2014 (section 20).

§ 1. The scope of part A of this Regulation apply to holding companies in the insurance business unit, management companies for mutual funds that do not have permission to engage in active management, clearing houses, insurance companies, pension funds and deposit the pension companies, and specifies how the responsible capital in these institutions are defined and calculated in accordance with the legal minimum requirements and requirements on prudent capital coverage.
Part B of this Regulation applies to commercial banks, savings banks, financing companies, holding companies in non-financial group insurance Executive, investment firms and management companies for mutual funds that are allowed to engage in active management, and specifies how the responsible capital in these institutions are defined and calculated in accordance with the legal minimum requirements and requirements on prudent capital coverage.

Part A, section 2. Responsible capital the responsible capital consists of core capital (§ 3) and additional capital (§ 4). Core capital consists of equity (pure core capital) and other approved core capital. The calculation applies to deductions, addition and limitations pursuant to section 7 to section 9.

§ 3. Equity (pure core capital) Pure core capital may consist of the following records: 1. Paid up ordinary share capital stipulated.

2. Share premium.

3. Leveling Fund.

4. Paid up ordinary share capital stipulated the owner.

5. Guarantee Fund of mutual insurance companies with the deduction of the part of the Fund responsible loan capital.

6. Fully paid up member deposits in mutual insurance companies which, by the articles of Association is mandatory for the company's customers. It should be apparent by the company's articles of association that the Member to be able to deposit used to cover loss or deficit by running the operation and do not give return regardless of the annual operating result. By refund the customer has claim to get the proportion of reversed the overall equity by uttreden that corresponds to the client's share of the total premium reserve. Refund of Member deposits can not take place without following the consent of the financial supervision. By refund of Member deposits apply to the companies Act section 12-6 on the creditor's notice as far as the fit.

7. Other earned and other paid-in capital. Issued capital, including the stakeholder deposits, are not included.

8. Accumulated profit according to the published and revisorbekreftet interim financial statements provided that the amount is reduced by the foreseeable tax and dividend, and that loss review is undertaken in accordance with the regulations for accounting treatment of loans and guarantees in the financial institutions. By use of the equity method in the company's accounts to the period's transfer to the Fund for the rating differences come to the deductions in the calculation of accumulated surplus after the first period.

9. Equity.

10. Contributions in the pension funds that after Finance Ministry consent can be equated with core capital.

11. Share of the additional provisions in life insurance companies and pension funds equivalent to the amount that could have been recognized according to the Insurance Act section 9-17, third paragraph, if it had been a year of accounting.

The Ministry of finance can, in a particular case, and for a time limited period agree that other capital can be equated with equity.

section 3a. Other authorized core capital (hybrid capital, including fund bond capital) Capital which is approved according to the rules below, are considered as other core capital. The Ministry of finance can fix closer to rules on other core capital.
Types of capital that can be considered is a) in) capital without fixed maturity with moderate incentives to refund, and ii) capital without incentives to refund with the fixed term of a minimum of 30 years where the claim for refund can be suspended b) capital without fixed maturity and without incentives to refund c) capital that cannot be repaid and that can be converted to ordinary shares or EC.

Capital as mentioned in the preceding paragraph may considered as other core capital when the following conditions are met.

a) General conditions 1.
The capital must be fully paid up, be unsecured, and stand back for the institution's responsible loan capital.

2. The financial audit must have given consent to the recording of the capital.

b) run time and refund 1.
The creditor may not require the førtidig redemption of capital. The borrower can not redeem or buy back all or part of the capital without the consent of the financial supervision. Financial audit can extend the run time if the Financial audit finds that this is necessary in the interest of the borrower's solvency or financial condition.

2. The borrower shall not have the right to repay the capital until 5 years after the issue day. For capital with moderate incentive to refund can still the first possible back the timing of payment at the earliest be 10 years after the issue day. For capital with the fixed run time to the capital could not be repaid before the stipulated due time.

c) Flexibility with regard to disburse the interest 1.
The borrower should be able to pay interest on other authorized core capital. The requirement of payment of interest will be withdrawn by violating capital requirements. Interest should not be accumulated. Financial audit can impose the borrower to stop interest payments in the interest of the borrower's solvency or financial condition. In cases where the financial audit payment of interest stops other authorized core capital for a borrower that meets the capital requirements, should the borrower rather than be able to use stocks or EC as payment after further rules set forth by the financial audit.

2. For other authorized core capital where the payment of dividends provide duty of payment of interest, the duty shall be withdrawn by violating capital requirements or if the Financial audit provides imposition of stop in the payout of the interest rate. The payment of dividends to the shareholders or EC owners in the form of shares or equity evidence shall not give the duty of payment of interest at other authorized core capital.

d) ability to cover loss 1.
If the borrower's core capital falls below 5 per cent, or the borrower's capital coverage falls below 8 percent of risikovektet calculation basis, or under other specified minimum requirements, to other authorized core capital pursuant to section 3a second paragraph letter a) and b) could be written down to cover the recognized loss in financial statements or otherwise ascertained loss during ongoing operation with the same priority (pro rata) as down the writing of equity pursuant to section 3 or could be converted into equity. Financial audit can fix closer to rules on such impairment and conversion.

2. If other authorized core capital pursuant to section 3a second paragraph letter a) and b) be written down, it can be written up again in that it is assigned to a share of future results matching their share of core capital after write-downs. In the period that other authorized core capital is written down, the requirement on the interest rate.

3. other approved core capital pursuant to section 3a second paragraph letter a) and b) be written down with the final effect if all the parenthetical equity is written down.

4.

By violating capital requirements to other authorized core capital pursuant to section 3a second paragraph letter c) are converted to ordinary share capital or ordinary EC capital. Financial audit may in addition require conversion if this is considered necessary due to the borrower's solvency or financial condition. The conversion rate is determined by the market value of the shares or equity the evidence on the issue day of the relevant authorized core capital. The lenders will get fewer shares or EC if the stock price has risen, but not more shares or EC if the stock price is reduced.

§ 4. Additional capital Additional capital may consist of the following records: 1. Responsible loan capital without fixed maturity that meet the following criteria: a) Special consent from the authorities for the recording of such capital must be released.

b) funds will not be able to be repaid on the initiative or kreditors without Financial authority's consent.

c) Funds must be able to be applied to the coverage of the loss or deficit without the institution's business ceases.

d) loan agreement to contain a right of the borrower to defer interest payments.

2. Responsible loan capital with the fixed period that meets the following conditions:-the special consent from the authorities for the recording of loan capital must be released.

-Lend capital to be unsecured and will be back for the institution's General debt, as well as be fully paid up.

-the loan must have a term of at least 5 years. In the last 5 years before the agreed due date of the loan, or of part of the loan, to the part of the loan capital that can be considered as additional capital each year will be reduced by 20 percent of the amount that is due. Last year before the due date are considered not as responsible loan capital.

-loan agreement must not include clauses that the loan may be required on initiative kreditors repaid before the agreed due date. Repayment of the loan before the agreed due date can not be made without the financial authority's consent.

3.45 percent of net unrealized gains on stocks, shares and equity evidence classified as available for sale, cf. The International Accounting Standards (IAS) 39. The provision does not apply to life insurance companies and pension funds.

4.45 per cent of unrealized gains on investment properties and land and buildings covered by section 7, first paragraph, LITRA, jf. The International Accounting Standards (IAS) 40 and IAS 16. The provision does not apply to life insurance companies and pension funds.

5. Excess amount of other authorized core capital, cf. section 9 first paragraph, LITRA d.

§ 5. (Revoked 1 jan 2007 by regulation 14 des 2006 Nr. 1507.) section 6. (Repealed by regulation 23 des 1992 Nr. 1202.) section 7. Tax records the following records to be drawn from the core capital: a. Accumulated deficit.

b. holding of own shares/equity evidence.

c. Posted goodwill, deferred tax assets and other intangible assets, including intangible assets as arising after the application of the rules in IFRS-4.31 4.33 and intangible assets calculated under the rules of IFRS 4.31 4.33-who have come to the deductions in the insurance obligations of the application of IFRS 3.

d. Overfinansiering of pension obligations, taking into consideration the effect of deferred taxes.

e. the net profits from the capitalisation of future income from securitized assets used for credit support.

f. dividends and group contribution allocated for giving away that are classified as equity, cf. The International Accounting Standards (IAS) 10.

g. Net unrealized gains on stocks, shares and equity evidence classified as available for sale taking into consideration the effect of deferred tax, jf. The International Accounting Standards (IAS) 39. The provision does not apply to life insurance companies and pension funds.

h. the net unrealised profit on loans, certificates and bonds classified as available for sale taking into consideration the effect of deferred tax, jf. The International Accounting Standards (IAS) 39. The provision does not apply to life insurance companies and pension funds.

in the. Unrealized gains on investment properties and land and buildings which are included in core capital, cf. The International Accounting Standards (IAS) 40 and IAS 16. The provision does not apply to life insurance companies and pension funds.

j. Net unrealized gains on hedging instruments in cash hedging effect of power taking into account deferred taxes, jf. The International Accounting Standards (IAS) 39.

k. unrealised profit included in core capital as a result of the reduced value of the debt, and that is due to a weakening of the institution's own credit rating, jf. The International Accounting Standards (IAS) 39.

l. equity components of convertible bonds that the institution itself has issued, cf. The International Accounting Standards (IAS) 32.

m. fifty percent of the carrying values of the primary capital in other financial institutions and investment firms for that part of the capital in the receiving financial institution or investment firm that exceed two percent. It should not be made allowance for responsible capital in other financial institutions and investment firms that for the purposes of capital coverage policies on the consolidated basis will be consolidated with the reporting institution. The provisions of the first and second sentence does not apply to life insurance with investment options without ROI guarantee.

n. Fifty percent of the posted values of responsible capital as not deducted from according to the first paragraph of the letter m first sentence and second paragraph letter b first sentence, for the part of the sum of such responsible capital that exceeds ten percent of the financial institution's own responsible capital. For insurance companies apply the provision after the first sentence of the carrying values of the primary capital in excess of fifty percent of the insurance company's own responsible capital. The provisions of the first and second sentence does not apply to life insurance with investment options without ROI guarantee.

o. Fifty percent of credit or guarantee as mentioned in section 2 funding Act-37 first paragraph Nr. 1 letter b.

p. Fifty percent of the amount of engagement for verdipapiriseringsposisjoner that risikovektes with 1250 percent after capital claim regulation part WE about securitization, including the amount of engagement for verdipapiriseringsposisjoner in the trading that would have gotten the risk weight 1250 percent after share WE if the positions had been recognised in the bank portfolio. The deduction should not be made for the amount of engagement for verdipapiriseringsposisjoner covered by section 7, first paragraph, LITRA o and other paragraph, LITRA d, nor if the institution has chosen to let the records included in the calculation base for the capital.

q. the minimum reassuranseavsetning calculated in accordance with regulation 10. May 1991 No. 301 about the insurance technical provisions and risk statistics in the damage insurance and regulations 18. November 1992 No. 1242 about insurance technical provisions and risk statistics in the damage insurance (supplementary).

r. Unrealized exchange on financial instruments assigned to the company's portfolio that are included in the core capital and that in sum are positive. This provision applies to life insurance companies and pension funds.

s. If the deductions in the additional capital pursuant to § 7 second paragraph letter a through f to together is higher than additional capital calculated in accordance with section 4, the excess amount is deducted from core capital.

The following entries will be drawn from in the additional capital: a. Treasury instruments mentioned in § 4 No. 2 and 3.

b. fifty percent of the book value of the primary capital in other financial institutions and investment firms for that part of the capital in the receiving financial institution or investment firm that exceed two percent. It should not be made allowance for responsible capital in other financial institutions and investment firms that for the purposes of capital coverage policies on the consolidated basis will be consolidated with the reporting institution. The provisions of the first and second sentence does not apply to life insurance with investment options without ROI guarantee.

c. fifty percent of the posted values of responsible capital as not deducted from according to the first paragraph of the letter m first sentence and second paragraph letter b first sentence, for the part of the sum of such responsible capital that exceeds ten percent of the financial institution's own responsible capital. For insurance companies apply the provision after the first sentence of the carrying values of the primary capital in excess of fifty percent of the insurance company's own responsible capital. The provisions of the first and second sentence does not apply to life insurance with investment options without ROI guarantee.

d. fifty percent of credit or guarantee as mentioned in section 2 funding Act-37 first paragraph Nr. 1 letter b.

e. Fifty percent of the amount of engagement for verdipapiriseringsposisjoner that risikovektes with 1250 percent after capital claim regulation part WE about securitization, including engagement amount for verdipapiriseringsposisjoner in the trading that would have gotten the risk weight 1250 percent after share WE if the positions had been recognised in the bank portfolio. Such a deduction should not be made for the amount of engagement for verdipapiriseringsposisjoner covered by section 7, first paragraph, LITRA o and other paragraph, LITRA d, and should also not be made if the institution has chosen to let the records included in the calculation base for the capital.

section 8. Following additional records to be added to the core capital: a. Net unrealised loss on loans, certificates and bonds classified as available for sale, cf. IAS 39, except for impairment as a result of impaired creditworthiness. The provision does not apply to life insurance companies and pension funds.

b.

Net unrealized losses on hedging instruments in cash power fuse, jf. The International Accounting Standards (IAS) 39.

c. unrealised loss less the core capital as a result of the increased value of the debt and that is due to an improvement of the institution's own credit rating, jf. The International Accounting Standards (IAS) 39.

§ 9. Limitations the following restrictions shall apply: a. the sum of the records that are included in the supplementary capital may not amount to more than 100 percent of core capital after deductions and additions as specified in the letter e.

b. Responsible loan capital with the fixed run time cannot correspond to a higher amount than the equivalent of 50 percent of core capital after deductions and additions as specified in the letter e.

c. For mutual insurance companies that have bounded industry concession and works in a restricted geographical area, they apply restrictions on the responsible loan share of Fund Kapital's warranty that is provided in the licensing.

d. the sum of other authorized core capital pursuant to § 3a first paragraph, LITRA a, b and c can not constitute more than 50 percent of core capital after deductions and additions as specified in the letter e. the sum of the other authorized core capital pursuant to § 3a first paragraph, LITRA a and b may not amount to more than 35 percent of core capital after deductions and additions as specified in the letter e. other authorized core capital pursuant to § 3a first paragraph, LITRA a can not constitute more than 15 percent of core capital after deductions and additions as specified in the letter e.

e. deduction of the records mentioned in section 7, first paragraph, LITRA a to l, q and r and the addition of the records mentioned in section 8 letter a to c.

Financial audit can in special cases and for a limited time period agree that a financial institution may have a composition of the capital that exceeds the limits imposed by the first paragraph.

section 11. Transitional provisions the Fund bond capital busy until 31. December 2010 counts as core capital per 31. December 2010, but who do not meet the criteria in section 3a, shall be considered as other authorized core capital pursuant to section 3a up to 1. January 2041, but so that the amount is excluded from 1. January 2021 will be limited to a maximum of 20 percent of core capital after deductions and additions as specified in section 9 letter e, and so that the amount is excluded from 1. January 2031 is limited to a maximum of 10 percent of core capital after deductions and additions as specified in section 9 letter e.

Part B section 12. Definitions with the company in the financial sector will mean: banks, finance companies, investment firms, management company for mutual funds, insurance company, holding company of financial group, payment companies, e-pengeforetak and loan companies as well as firms that marshaling provides associated services cf. capital claim regulations § 1-2 letter n).
With significant investment means: a. a stake of 10 percent, b. a capital interest or joint management with the company as it is invested in, cf. Finance Act § 2a-2 h) and in).

The definitions of the short and long position in the capital claim regulations § 1-2 letter aa) and dd) applies accordingly.

section 13. Responsible capital the responsible capital consists of core capital (section 14 and section 15) and the additional capital (section 16). Core capital consists of equity (pure core capital) and other approved core capital. By the calculation of deductions and applies to primary capital addition, according to section 17, section 18 and section 19.

section 14. Equity (pure core capital) Pure core capital may consist of the following records: 1. Paid up ordinary share capital.

2. Paid up ordinary EC capital in institution that has membership deposits.

3. the approval of the Member Financial deposit after the audit.

4. Paid up share capital and EC capital with preference to dividends, provided that the proceeds do not exceed 125 percent of the dividend on common stock and EC capital. The total dividend must not exceed 105 percent of what the dividend would have been without preference to dividends.

5. Paid up corporate contributions in the daughter and sister company that is less accountable capital in avgivende company.

6. Share premium.

7. Leveling Fund.

8. The compensation fund.

9. Save the Bank's funds, including the PCC.

10. Gavefond.

11. Fund for unrealized gains.

12. Funds for the valuation.

13. Accumulated other income and expenses that are not included in other records.

14. Other retained earnings.

15. Accumulated profit according to the revisorbekreftet interim financial statements or financial statements which is adopted by the Board. The amount to be reduced with the foreseeable tax and dividend, and loss review should be undertaken in accordance with the regulations for accounting treatment of loans and guarantees in the financial institutions.

The issued capital must not be funded directly or indirectly by the institution.
The Ministry of finance can, in special cases and for a limited time period agree that other capital can be considered as core capital.

section 15. Other authorized core capital (hybrid capital, including fund bond capital) other authorized core capital may consist of instruments that meet the criteria in the No. 1-4 below, and optionally share premium for such instruments. The Ministry of finance can fix closer to rules on other authorized core capital.

1. General terms a. Capital must be fully paid up, be unsecured, and stand back for the institution's responsible loan capital.

b. Capital must not be owned by the company where the institution has a capital interest, or be funded directly or indirectly by the institution.

c. Financial audit must have given consent to the recording of the capital.

2. run time and refund a. The creditor may not require the redemption of the capital.

b. Capital must be no incentive to fulfillment.

c. the borrower can not redeem or buy back all or part of the capital without the consent of the financial supervision. The borrower will not be able to repay the capital before five years after the issuance day except as a result of rule changes which means that capital can no longer be regarded as other core capital or by significant changes in the tax treatment of the instruments.

3. Flexibility with regard to disburse the interest a Borrower should be able to leave. be paying interest on other core capital. Interest should not be accumulated or replaced with other forms of payment. Non-payment should not be considered failing.

b. loan agreement must not restrict the flexibility with regard to the payment of interest, such as bindings between dividend and interest payment.

c. the interest rate cannot be changed as a result of changes in the creditworthiness of the borrower or borrower's parent company.

4. Ability to cover the loss a. If the borrower's clean core capital falls below 5.125 percent, to capital could be written down or converted to plain core capital. Instruments will is written down or converted fully or with a lower amount that increases the pure core capital coverage to 5.125 percent.

b. Other core capital can excluded with a higher amount than the pure core capital generated if all other core capital be written down or converted.

c. Other core capital that is written down, can be written up again in that it is given a share of the accumulated profits, jf. § 14 No. 15. Any interest will be calculated from the written down amount.

d. Overall appreciation and interest rate shall not exceed the annual profit after tax multiplied by the share of different kernel Kapital's core capital. The percentage is to be calculated as other core capital that has been the subject of impairment, before write-down, divided on core capital at the time of calculation. Overall appreciation and interest on other core capital should along with other allocations be within the maximum disposal amount by CRR/CRD IV Regulation section 6.

e. impairment of other core capital is going to happen with the final effect if this is agreed or write-off is made according to the rules of the bank guarantee law § 3-6.

f. For other core capital to be converted, it should be specified in the loan agreement the conversion rate and the conversion limit amount.

section 16. Additional capital Additional capital may consist of the following records: i. Responsible loan capital and other capital instruments, and optionally share premium for such instruments, which meet the requirements in Nr. 1 to Nr. 4 below.

II. The numerical value of negative values of the adjusted expected loss after the capital claim regulations section 15-7 limited to 0.6 per cent of the calculation basis.

1. General terms a. Capital must be fully paid up, be unsecured, and stand back for the institution's General debt.

b. Capital must not be owned by the company where the institution has a capital interest, or be funded directly or indirectly by the institution.

c. Financial audit must have given consent to the recording of the capital.

2. run time, refund and inclusion: a. Capital must have a term of a minimum of five years. The creditor may not require the redemption of the capital before the agreed due date.

b. Capital must be no incentive to the førtidig redemption.

c. the borrower can not redeem or buy back all or part of the capital before the agreed due date without the consent of the financial supervision. The borrower will not be able to repay the capital before five years after the issuance day except as a result of rule changes which means that capital can no longer be considered as additional capital or by significant changes in the tax treatment of the instruments. In the last five years before the maturity of the loan, or part of the loan, to the part of the loan capital that can be considered is calculated by multiplying the loan amount by the number of calendar days remaining, and divide on the number of calendar days in the five-year period.

3. Interest payment etc..: a.

The loan agreement must not give the lender the right to speed up the payments of interest or principal of the loan other than by the liquidation.

b. the interest rate cannot be changed as a result of changes in the creditworthiness of the borrower or borrower's parent company.

4. Ability to cover loss: responsible lending capital to be able to is written down under the rules of the bank Protection Act § 3-6.

§ 17. Tax records the following records to be drawn from pure core capital: a. Accumulated deficit.

b. deferred tax assets. Deferred tax assets for the same tax subject can be reduced by deferred taxes if there is access to the offset. Deferred tax assets may not be reduced by deferred tax that is taken into account in the letter c), d) or f). Deferred taxes that reduce deferred tax assets to be distributed proportionately between the deferred tax assets resulting from temporary differences and other deferred tax assets.

c. Goodwill, including goodwill in non-consolidated companies in the financial sector where investment is substantial, taking into consideration the effect of deferred taxes.

d. other intangible assets reduced by deferred taxes.

e. Positive values of the adjusted expected loss after the capital claim regulations section 15-7.

f. Overfinansiering of pension liabilities reduced by any means in the prize fund in excess of three times the average of the year's Prize and the prizes for the previous two years, taking into consideration the effect of deferred taxes.

g. direct, indirect and synthetic stocks of own clean core capital instruments including instruments that the institution has the obligation to buy.

h. direct, indirect and synthetic holdings of equities, EC and member deposits in other companies in the financial sector where investment is essential.

in the. Direct, indirect and synthetic holdings of equities, EC and member deposits in other companies in the financial sector calculated according to § 18 second paragraph letter d) where investment is not significant.

j. the following records provided that they are not included in the calculation base for capital requirements: i. verdipapiriseringsposisjoner; including credit or guarantee as mentioned in section 2 funding Act-37 first paragraph Nr. 1 letter b, cf. capital claim Regulations Chapter 26;

II. counterparty risk for the transactions that are not completed, jf. capital claim regulation § 37-2;

III. coverage of the underlying credits in a basket where it cannot determine the risk weight for the IRB approach, cf. capital claim regulations section 15-6.

k. Net profits from the capitalization of future revenue from securitized assets used for credit support.

l. profit from the transfer of the loan portfolio to special undertakings for the securitization that is related to future income.

m. Dividend and group contributions allocated to the payment that are classified as equity, cf. IAS 10.

n. Net unrealized gains on hedging instruments by cash flow hedging taking into consideration the effect of deferred tax, jf. IAS 39.

o. Unrealised profit as a result of the reduced value of its own debt, measured at fair value, which is caused by a weakening of the institution's creditworthiness.

p. unrealised profit as a result of the reduced value of derivative liabilities measured at fair value, which is caused by a weakening of the institution's creditworthiness.

q. value adjustments on all assets measured at fair value after the method of the capital claim regulations section 31-2.

The following entries will be drawn from other core capital: a. direct, indirect and synthetic stocks of own fund bonds including fund bonds that institution has the obligation to buy.

b. direct, indirect and synthetic stocks by Fund bond capital in other companies in the financial sector where investment is essential.

c. direct, indirect and synthetic stocks by Fund bond capital in other companies in the financial sector calculated according to § 18 second paragraph letter d) where investment is not significant.

The following entries will be drawn from the additional capital: a. direct, indirect and synthetic stocks of own responsible loan capital including own responsible loan capital that the institution has the obligation to buy.

b. direct, indirect and synthetic stocks of responsible loan capital in other companies in the financial sector where investment is essential.

c. direct, indirect and synthetic stocks of responsible loan capital in other companies in the financial sector calculated according to § 18 second paragraph letter d) where investment is not significant.

If the deductions in the additional capital exceeds the institution's additional capital should the excess amount is deducted from the other core capital. Corresponding to the excess deduction in other core capital is deducted from the pure core capital.

§ 18. Special provisions for certain tax rules deduction for own capital instruments: a. the deduction of own capital instruments under section 17 subsection letter g), the second paragraph letter a) and third paragraph, LITRA a) is to be calculated from the gross long positions, with the following exceptions: i. the deduction can be calculated from the net long positions if the long and short positions are in the same underlying exposure, those short positions do not involve counterparty risk and both long and short positions are included in either trading or banking portfolio.

II. Deductions for investments in own capital instruments through the indexes to be calculated from the proportion of own capital instruments in the indexes.

Deduction for investment in other companies in the financial sector: a. Deductions in section 17 subsection letter h) and in the second paragraph) letter b) and c) and the third paragraph, LITRA b) and c) shall not include the full drawing guarantees by the capital extensions that apply to five or fewer working days. Deductions can be calculated on the basis of the net long positions in the same underlying exposure if the maturity of those short positions correspond to the maturity of the long positions or if the short positions have a remaining maturity of at least one year. Both the short and long positions must either be included in the trading or in the bank portfolio.

b. Deductions for investments in other companies in the financial sector through the indices to be calculated from the proportion of capital instruments issued by other companies in the financial sector in the indexes.

c. deduction should be made for investment in the company in the financial sector which are included for the calculation of capital requirements on consolidated basis.

d. Deductions in section 17 subsection letter i), second paragraph, LITRA c) and third paragraph, LITRA c) is calculated as the investment that exceeds 10 percent of the institution's clean core capital adjusted for the charges in section 19 and deductions in section 17 subsection with the exception of the letter h), in) and deferred tax assets resulting from temporary differences. The deduction is to be distributed on the pure core capital, core capital and supplementary capital from the share of each type of capital instrument of the overall non-essential investments in responsible capital in the company in the financial sector.

The exception of deferred tax assets and significant investments in other companies in the financial sector: Enterprises can choose to disregard the following records in the calculation of deductions: a. deferred tax assets resulting from temporary differences and significant direct, indirect and synthetic investments in other companies in the financial sector as each make up 10 percent or less of the pure core capital after the addition of section 19 and other deductions in section 17 subsection.

b. the total amount may not exceed 17.65 percent of pure core capital after deductions under section 17 without the exceptions in a), and any addition, pursuant to section 19. The exemption amount is to be distributed among the records in a) after the aspect ratio between the records.

§ 19. Addition, the following entries can be added to the pure core capital: a. Net unrealized losses on hedging instruments by cash flow hedging.

b. Unrealized loss less the pure core capital as a result of the increased value of their own debt measured at fair value due to an improvement of the institution's own creditworthiness.

c. unrealised loss as a result of the increased value of derivative liabilities measured at fair value, which is due to an improvement of the institution's own creditworthiness.

section 20. Transitional provisions the following transitional provisions apply: a. Deductions in section 17 subsection letter in) to forward to 31. December 2017 is done with the following shares: i. to 31. December 2014:20% ii.
on January 1, 2015 to 31. December 2015:40 percent iii.
on January 1, 2016 to 31. December 2016:60% iv.
on January 1, 2017 to 31. December 2017:80 percent.

The direct investments that are not drawn from in pure core capital after the first period is going to come to the deduction by half in the core capital and half in the additional capital. The indirect and synthetic investment that is not subtracted from in pure core capital after the first sentence should be included in the calculation of capital requirements.

b. up to 31. December 2014 can fund bonds and the responsible loan capital taken up before forskriftens entry into force are considered 100 percent. From 1. January 2015 to 31. December 2021 can fund bonds and responsible loans taken up before 31. December 2011 is excluded in the other capital and core respectively additional capital with the following share out from the inventory of instruments per 31. December 2012: i. 1. January 2015 to 31. December 2015:70% ii.
on January 1, 2016 to 31. December 2016:60% iii.
on January 1, 2017 to 31. December 2017:50% iv.
on 1 January 2018 to 31. December 2018:40 percent v. 1. January 2019 to 31. December 2019:30 percent.
on 1 January 2020 to 31. December 2020:20 percent vii.
1. January 2021 to 31. December 2021:10 percent.


The excess Fund bond capital can count with that additional capital if it is free share for inclusion of additional capital. Fund bonds and the responsible loan capital with incentive to fulfillment, which are not met at the time of rate increase, not included in the primary capital after this time.

c. in the period up to 31. December 2014 to be drawn from the following entries in the pure core capital: in. Net unrealized gains on stocks, shares and equity certificates classified as available for sale taking into consideration the effect of deferred taxes.

II. Net unrealized gains on loans, certificates and bonds classified as available for sale taking into consideration the effect of deferred taxes.

III. Unrealized gains on investment properties and land and buildings which are included in the pure core capital.

d. in the period up to 31. December 2014 to the following records will be added to additional capital: in 36 percent of. Net unrealized gains on stocks, shares and equity certificates classified as available for sale.

II. 36 per cent of the net unrealised profit on loans, certificates and bonds classified as available for sale.

III. 36 per cent of unrealized gains on investment properties and land and buildings covered by this paragraph, LITRA c no. III). § 21. Complementary rules Financial Audit can provide complementary rules to part B of the regulations.

§ 22. Entry into force this Regulation shall enter into force simultaneously with the regulation on minimum capital coverage of financial institutions, see. Law 10. June 1988 No. 40 about financing business and financial institutions § § 2-9, third paragraph, and 3-17.