Page 125 - ACCESS ANNUAL REPORT 2019

NOTES (continued)
A a o nts are in tho sands o hana edis n ess otherwise stated Financia ris anage ent contin ed
apita anage ent
he Group’s policy is to maintain a stron capital ase so as to maintain investor, creditor and mar et confidence and to sustain uture development o the usiness. he impact o the level o capital on shareholders’ return is also reco nised and the Group reco nises the need to maintain a alance etween the hi her returns that mi ht e possi le with reater earin and the advanta es and security afforded y a sound capital position.
here is no prescri ed re ulatory capital or the su sidiaries.
Reg ator capita
he Ban ’s re ulator, the Ban o Ghana sets and monitors capital re uirements or the Ban as a whole. In implementin current capital re uirements, the Ban o Ghana re uires the Ban to maintain a prescri ed ratio o total capital to total ris wei hted assets.
he Ban ’s re ulatory capital is analysed into two tiers
• ier 1 capital, also re erred to as core primary capital is made up o e uity and disclosed reserves. E uity includes issued and ully paid ordinary share capital and perpetual cumulative pre erence shares. Disclosed reserves relate to those created or increased y appropriation o a ter tax income surplus, retained profits and eneral statutory reserves ut excludes credit ris reserve.
• ier 2 capital, also re erred to as supplementary secondary capital includes revaluations reserves, latent revaluation reserves and hy rid capital instruments. atent revaluation reserves relate to unrealised ains on e uity instruments classified as held to collect and sell.
arious limits are applied to elements o the capital ase. he uali yin tier 2 capital cannot exceed tier 1 capital.
Ris wei hted assets are determined accordin to specified re uirements that see to re ect the varyin levels o ris attached to assets and off alance sheet exposures.
he capital ade uacy ratio is the uotient o the capital ase o the Ban and the Ban ’s ris wei hted asset ase. In accordance with Ban o Ghana’s re ulations, a minimum ratio o 10 is to e maintained.
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