EMI Capital Requirements Calculator

Scope & reliance — 🔒 All inputs are processed locally in your browser. No data is transmitted. Do not enter real personal data — use synthetic or anonymised inputs only. Method percentages and thresholds are per EMD2 Art 5 and UK EMRs 2011 Reg 19 as published — verify against current legislative texts and EBA/GL/2021/03 before relying on any output. The €350,000 initial capital floor is non-negotiable. Deterministic logic · no inference · zero PII · CC BY 4.0.

Method Selection & Inputs

Calculation Method

Method A

2% of average outstanding e-money. Simple. Best for stable, predictable e-money float.

Method B

% of Relevant Indicator (net income / operating income). Tiered rate. Best for large payment volumes with low float.

Method C

% of payment transaction volume. Scaled rate. Best for transaction-heavy models with large volumes.

Average Outstanding E-Money (£/€) — Methods A & B 6-month rolling average of e-money issued and outstanding. EMD2 Art 5(2).

Relevant Indicator — Method B (£/€/yr) Sum of net interest income, net fee income, and other operating income. EMD2 Art 5(3) / EMRs 2011 Sch 1.

Payment Transaction Volume — Method C (£/€/yr) Total value of payment transactions executed in the preceding 12 months. EMD2 Art 5(4).

Risk-Adjusted Multiplier (k) NCA may adjust own-funds by up to ±20% based on risk assessment. EMD2 Art 5(5) / EMRs 2011 Reg 19(5).

Jurisdiction

Existing Own Funds (£/€) Current own funds held by the EMI for comparison against requirement.

EMD2 Art 5 Formulas

Method A: Own Funds = max(€350,000, 2% × avg_outstanding_emoney × k) Method B: Own Funds = max(€350,000, RI_scaled × k) where RI_scaled = sum of RI_band × rate Method C: Own Funds = max(€350,000, PV_scaled × k) where PV_scaled = sum of PV_band × rate

Own Funds Requirement

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All-Methods Comparison

Method	Basis	Calculated Amount	After Floor	After k-Multiplier	vs. Initial Capital Floor	Tag

Calculation Breakdown

Capital Buffer Analysis

ⓘ EBA/GL/2021/03 recommends EMIs maintain a buffer above regulatory minimum to absorb operational shocks. A buffer of 20–30% above the calculated requirement is common in FCA supervisory expectations. The buffer does not reduce the regulatory minimum.

{
  "name": "calculate_emi_capital_requirements",
  "description": "Computes own-funds requirements for EMIs under EMD2/UK EMRs Methods A, B, and C.",
  "inputSchema": {
    "type": "object",
    "properties": {
      "method":                { "type": "string", "enum": ["A","B","C"] },
      "avg_outstanding_emoney":{ "type": "number", "description": "6-month avg e-money outstanding (GBP/EUR)" },
      "relevant_indicator":    { "type": "number", "description": "Net income / relevant indicator for Method B" },
      "payment_volume":        { "type": "number", "description": "Annual payment transaction volume for Method C" },
      "multiplier":            { "type": "number", "description": "k multiplier 0.8–1.2 (NCA discretion)" },
      "jurisdiction":          { "type": "string", "enum": ["UK","EU"] },
      "existing_capital":      { "type": "number" }
    },
    "required": ["method"]
  },
  "outputSchema": {
    "type": "object",
    "properties": {
      "required_own_funds": { "type": "number" },
      "selected_method":    { "type": "string" },
      "recommended_method": { "type": "string" },
      "all_methods":        { "type": "array" },
      "capital_buffer_rec": { "type": "number" }
    }
  }
}