Appropriate remuneration for liable capital

The remaining amount of the capital reserve had not been used and had not been recognised as liable core capital.

LSH paid remuneration for the transferred IB capital, but only to the extent of the liable amount actually used.

The table in paragraph 183 gives the relevant basis for calculating the appropriate return on liable capital.

Not all of a bank's additional liable capital recognised for supervisory purposes was automatically of economic use or conferred an economic advantage.

The table in paragraph 183 provides details on the calculation basis of relevance to the appropriate return on liable capital.

The silent partnership contribution of DEM 300 million had also been available in full as liable core capital until that date.

It should be borne in mind here that the capital transferred in 1986 was recognised from then on by BAKred as liable capital.

As stated above, the silent partnership contribution was not recognised as liable core capital for supervisory purposes in the period 1993-96.

The own-funds cushion of many Landesbanks was comparatively small even before transposal of the Solvency Directive into German law.

Even before the Solvency Directive was transposed into German law, many Landesbanks had relatively weak own-funds positions.

Under the risk profile approach, the point of reference for determining the appropriate market remuneration is the risk underlying an investment in a bank's liable equity capital.