Regulations Governing the Capital Adequacy and Capital Category of Banks Article 3

The bank shall calculate its stand-alone capital adequacy ratio. If a parent bank is required to present the consolidated financial statements in which it consolidates its investments in subsidiaries according to “International Financial Reporting Standards No. 10”, it shall also calculate the consolidated capital adequacy ratio. Those investments already deducted from the regulatory capital, however, shall not be included.When a bank calculates its consolidated capital adequacy ratio, non-controlling interests and other capital issued out of consolidated subsidiaries that is held by third parties may be included the amount of consolidated regulatory capital. The calculation approach should follow the rule of "the Methods for calculating Bank's regulatory capital and Risk Weighted Assets" (hereinafter referred to as the "calculation methods") that is issued by the competent authority.