Types of Tier 1 Capital Ratios under Basel. #ChartAcc
Friday, January 10, 2014
ChartAcc.com - There are 2 types of Tier 1 capital ratios under Basel as follows :
- Tier 1 Common Capital Ratio:
- Core Equity Capital
-
common stock
-
disclosed reserves / retained
earnings
- Non-redeemable Non-cumulative Preferred Stock
- Formula:
- Core Equity Capital--------------------------Risk-weighted Assets
- Tier 1 Total Capital Ratio
- Core Equity Capital,
- Preferred shares and
- non-controlling interests
- Formula:
- Total Capital----------------------Risk-weighted Assets
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