MCR Ratio

Overview

This calculator implements a simplified MCR coverage ratio using the visible eligible-own-funds numerator and the final MCR denominator. It shows how much eligible capital remains above the minimum capital requirement once the final floor-tested denominator has been established.

Use it after the numerator has been prepared on Eligible Own Funds and the denominator on Final MCR. It is a coverage indicator, not an eligibility engine.

Input Terms

• Eligible Own Funds for the Minimum Capital Requirement: Simplified MCR-eligible own-funds numerator from the lightweight tier split page.
• Final Minimum Capital Requirement: Final MCR after the corridor and absolute-floor steps.

Calculation

The route converts the prepared numerator and denominator into one percentage output.

• Minimum Capital Requirement Coverage Ratio: = `Eligible Own Funds for the Minimum Capital Requirement / Final Minimum Capital Requirement × 100`.
• The numerator is the simplified MCR-eligible own-funds view from the lightweight tier split page.
• The denominator is the floor-tested final MCR, not the linear or combined intermediate amount.

Important Notes

• A ratio above `100%` indicates that eligible own funds exceed the final MCR. A ratio below `100%` indicates a breach of the minimum capital requirement.
• This page inherits any simplifications in the numerator. Use Own Funds Eligibility when Tier 1, Tier 2, availability, or ring-fenced deductions need to be evidenced explicitly.
• If the absolute floor binds on Final MCR, the ratio can deteriorate even when the linear MCR chain is stable.