In aggregate, the banking system holds total capital equivalent to 22.5 percent of its risk weighted assets, which affords it with large buffers to absorb adverse shocks.
This conclusion is also borne out by the macro stress tests which the BoU carries out on a regular basis as part of its financial stability monitoring and which show that it is the large capital buffers held by banks which is the main source of their resilience to withstand adverse shocks.