The Capital Ratio is the ratio of the capital of a bank to its risk-weighted assets, used by regulatory agencies to assess the bank's resilience to losses and compliance with regulations, defined primarily by the Basel Agreements.
Tier 1 Capital represents the core capital of a bank and is a primary indicator of its financial health. It includes equity capital and disclosed reserves.
An in-depth exploration of Tier 2 Capital, its significance in banking regulation, components, and its role in maintaining financial stability.
A comprehensive guide to understanding the Tier 1 Common Capital Ratio, its significance in banking, how it is calculated, and real-world examples.
