Whether or not the Resolution authority decides that a market confidence buffer (that could be equal to the combined buffer requirement) should form part of the recapitalization amount is a matter of policy for the Resolution Authority. However, if there is to be a market confidence buffer as part of the recapitalization amount, it is very important to clarify whether or not it will come on top of the Basel 1 floor or leverage requirement. Given that the Basel 1 floor and the leverage ratio are metrics that have been designed as backstop to the risk sensitive capital requirements, there is no reason to require that an institution is recapitalized to an amount equal to the sum of Basel 1 floor/leverage requirement and the combined buffer. Indeed, this interpretation would not be in line with the way that own funds capital requirements are articulated in the CRR and CRD IV. The Combined buffer requirement is detailed in article 128 onwards of the CRD, and states very clearly that the buffers come on top of "the Common Equity Tier 1 capital maintained to meet the own funds requirement imposed by Article 92 of Regulation (EU) No 575/2013" (see for instance article 129 for the capital conservation buffer). Article 92 only requires institutions to maintain the minimum requirements of 4.5% CET1, 6% Tier 1 and 8% Total capital, and does not mention the Basel 1 floor, which is only mentioned in article 500. It follows therefore that the combined buffer of article 128 of CRD does not come on top of the Basel 1 floor of article 500. The logic is even clearer in the case of leverage ratio which is a metric for which clearly the combined buffer of CRD does not apply. In fact this is why the possibility of adding a "leverage ratio buffer" directly in the leverage requirement is currently being discussed in Basel and the EBA. If such leverage ratio buffer was to be introduced, surely it would not make sense to add on top of that the combined buffer set on the basis of risk weighted assets.