Under the Basel II.5 market risk framework, the total capital requirement for general market risk is the sum of the capital charges based on the normal VaR and the stressed VaR. The market risk charge utilizes a 99% confidence level over a 10-day holding period.

The capital formula is: $Capital = \max(VaR_{t-1}, m_c \cdot VaR_{avg}) + \max(sVaR_{t-1}, m_s \cdot sVaR_{avg})$

Given the parameters at the 99% confidence level:

• Latest 10-day VaR ($VaR_{t-1}$) = CAD 970 million
• Average 10-day VaR of Previous 60 Days ($VaR_{avg}$) = CAD 900 million
• Latest 10-day Stressed VaR ($sVaR_{t-1}$) = CAD 2,200 million
• Average 10-day Stressed VaR of Previous 60 Days ($sVaR_{avg}$) = CAD 2,460 million
• Multiplication factors $m_c = 4$ and $m_s = 4$.

Let's calculate the two components:

1. VaR Capital Charge = $\max(970, 4 \cdot 900) = \max(970, 3600) = 3600$ million
2. Stressed VaR Capital Charge = $\max(2200, 4 \cdot 2460) = \max(2200, 9840) = 9840$ million

Total Capital Requirement = $3600 + 9840 = 13,440$ million.