capital ratio example /Business
finish the Excel worksheet. Finish every blank space.
Tier 1 Common Capital (strictest measure)
= Common Shareholders’ Equity – Goodwill – Non-MSR Intangibles
Tier 1 Capital
= Total Shareholders’ Equity – Goodwill – Non-MSR Intangibles + Qualifying Hybrid Securities and Non-controlling Interests
Tier 2 Capital
= Subordinated Debt + Non-Qualifying Hybrid Securities + Qualifying Allowance for loan Losses*
Total Capital = Tier 1 Capital + Tier 2 Capital
*(NOTE: This Allowances for Loan Losses sometimes reported a neg #)
Tier 1 Common Equity Capital (CET1) Ratio
= 1 Common / Average Risk-weighted assets (RWA)
Tier 1 Capital Ratio
= Tier 1 Capital / Average RWA
Tier 2 Capital Ratio
= Tier 2 Capital / Average RWA
Total Capital Ratio
= Total Capital / Average RWA
Leverage Ratio
= Tier 1 Capital / Average Tangible Assets
