NOTE 22: REGULATORY CAPITAL

The Bank manages its capital under guidelinesestablished by OSFI. The regulatorycapital guidelines measure capital in relationto credit, market, and operational

risks. The Bank has various capital policies,procedures, and controls which it utilizesto achieve its goals and objectives. The Bankis designated as a domestic

systemically important bank (D-SIB) anda global systemically important bank (G-SIB).

Canadian banks designated as D-SIBs are requiredto comply with OSFI’s minimum targets for risk-basedcapital and leverage ratios. The minimumtargets

include a D-SIB surcharge and Domestic StabilityBuffer (DSB) for Common Equity Tier 1 (CET1), Tier 1, Total Capital and risk-based Total Loss Absorbing

Capacity (TLAC) ratios. The DSB levelwas increased to

3.5

% as of November 1, 2023, which sets theseminimum target ratios at

11.5

%,

13.0

%,

15.0

% and

25.0

%, respectively. The OSFI target includes the greater of theD-SIB or G-SIB surcharge, both of whichare currently

1

% for the Bank. On February 1, 2023,

OSFI announced revisions to the LeverageRequirements Guideline to introduce a requirementfor D-SIBs to hold a leverage ratio buffer of

0.50

% in addition to the

existing minimum requirement. This setsthe minimum targets for leverage and TLACleverage ratios at

3.5

% and

7.25

%, respectively.

The Bank complied with all minimum risk-basedcapital and leverage ratio requirementsset by OSFI in the six months ended April 30,2024.

The impact to CET1 capital upon adoptionof IFRS 17 is immaterial to the Bank.