Maximum distributable amount (MDA)

Roles that need it

• Capital Reporting Analyst
• FIG Coverage Analyst
• Credit Research Analyst
• Debt Capital Markets Analyst
• Treasury Analyst

Skills it belongs to

• Basel framework and capital
• Financial markets knowledge

Related concepts

• Capital buffersCapital buffers are CET1 requirements on top of the Pillar 1 and Pillar 2 minimums: the capital conservation buffer, the countercyclical buffer, and buffers for systemic banks and systemic risk. Together they form the combined buffer requirement. A bank that uses them faces limits on distributions.
• Additional Tier 1 (AT1)Additional Tier 1 capital consists of perpetual instruments that absorb losses while the bank is still a going concern, through conversion into shares or a write-down when CET1 falls below a trigger. Together with CET1 it forms Tier 1 capital. AT1 bonds are also called contingent convertibles or CoCos.
• CET1 (Common Equity Tier 1)Common Equity Tier 1 is the highest quality layer of a bank's own funds: ordinary shares, share premium, retained earnings and other reserves, minus regulatory deductions. The CET1 ratio divides it by risk-weighted assets and must be at least 4.5% under the CRR, before buffers and Pillar 2.

Sources

• Directive 2013/36/EU (Capital Requirements Directive), EUR-Lex (external site) accessed 31 Oct 2026
• The Basel Framework, BIS (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.