Common Equity Tier 1: Difference between revisions
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The highest quality form of regulatory capital under Basel III. | The highest quality form of regulatory capital under Basel III and CRD IV. | ||
It includes common equity shares (ordinary shares) and share premium, together with most equity reserves, less regulatory deductions. | It includes common equity shares (ordinary shares) and share premium, together with most equity reserves, less regulatory deductions. | ||
This capital has the greatest degree of subordination to all other claims on the bank's assets. | |||
For this reason, it has the best loss-absorbing capacity and quality from the perspectives of the bank and its supervisors. | |||
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==See also== | ==See also== | ||
* [[ | * [[Additional Tier 1]] | ||
* [[Bank supervision]] | |||
* [[Basel II]] | * [[Basel II]] | ||
* [[Basel III]] | * [[Basel III]] | ||
* [[Capital adequacy]] | * [[Capital adequacy]] | ||
* [[Capital | * [[Capital Requirements Directive]] | ||
* [[CET1 ratio]] | * [[CET1 ratio]] | ||
* [[Common]] | |||
* [[Common equity]] | * [[Common equity]] | ||
* [[CRD IV]] | * [[CRD IV]] | ||
* [[Equity]] | * [[Equity]] | ||
* [[Ordinary shares]] | * [[Ordinary shares]] | ||
* [[Own funds]] | * [[Own funds]] | ||
* [[ | * [[Subordination]] | ||
* [[Tier 1]] | * [[Tier 1]] | ||
* [[Tier 2]] | * [[Tier 2]] (T2) - Tier 2 capital | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:Long_term_funding]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Manage_risks]] | |||
[[Category:Risk_reporting]] | |||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 15:41, 5 July 2022
Banking.
(CET1).
Common Equity Tier 1 capital.
The highest quality form of regulatory capital under Basel III and CRD IV.
It includes common equity shares (ordinary shares) and share premium, together with most equity reserves, less regulatory deductions.
This capital has the greatest degree of subordination to all other claims on the bank's assets.
For this reason, it has the best loss-absorbing capacity and quality from the perspectives of the bank and its supervisors.
Sometimes known as Core Equity Tier 1.
