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 examination of Common Equity Tier 1 (CET1), a crucial component of Tier 1 capital primarily consisting of common stock held by financial institutions. Learn about its definition, calculation, historical significance, applications, and related terms.
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