Common Equity Tier 1: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Update link.) |
imported>Doug Williamson (Add link.) |
||
| (2 intermediate revisions by the same user not shown) | |||
| Line 28: | Line 28: | ||
* [[Capital Requirements Directive]] | * [[Capital Requirements Directive]] | ||
* [[CET1 ratio]] | * [[CET1 ratio]] | ||
* [[Common]] | |||
* [[Common equity]] | * [[Common equity]] | ||
* [[CRD IV]] | * [[CRD IV]] | ||
* [[Equity]] | * [[Equity]] | ||
| Line 35: | Line 35: | ||
* [[Own funds]] | * [[Own funds]] | ||
* [[Subordination]] | * [[Subordination]] | ||
* [[Tier 1]] | * [[Tier 1]] | ||
* [[Tier 2]] | * [[Tier 2]] (T2) - Tier 2 capital | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
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.
