A measure of minority interest that represents the proportion of excess capital of a subsidiary that relates to third parties (equity of third party owners). This excess portion is deducted from accounting non-controlling interest to produce eligible minority interest to be included in a subsidiary’s own funds.
In accounting, excess minority interest is a charge against majority interest.
For regulatory purposes, excess minority interest is part of the regulatory adjustments to minority interest equity. In other words, excess minority interest equity attributable to third-party owners is deducted from minority interest equity to reach at net common equity tier 1 (including partial recognition of minority interests).
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