On this page is a common equity tier 1 capital ratio or CET1 ratio calculator. Enter the bank's reported Common Equity Tier 1 Capital and Risk-Weighted Assets to compute the Common Equity Tier 1 Capital Ratio.
Common Equity Tier 1 Leverage Ratio Calculator
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What is the Common Equity Tier 1 Capital ratio?
A bank's Common Equity Tier 1 Capital ratio compares a bank's very highest quality liquid asset holdings to its reported risk-adjusted assets. Tier 1 capital is defined by Basel III, and Common Equity Tier 1 Capital is the highest quality of tier 1. The Tier 1 Leverage Ratio is another measure with minimum requirements from Basel III, and compares all Tier 1 Capital to Total Assets.
Common Equity Tier 1 Capital Ratio Formula
The Common Equity Tier 1 Capital formula is:
Common\ Equity\ Tier\ 1\ Capital\ Ratio=\frac{Common\ Equity\ Tier\ 1\ Capital}{Risk-Weighted\ Assets}Where:
- Common Equity Tier 1 Capital – The highest quality liquid assets, as defined by Basel III.
- Risk-weighted Assets – Risk-weighted assets reported by a bank.
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