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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* [[AT1]] | * [[AT1]] | ||
* [[Bank supervision]] | |||
* [[Basel II]] | * [[Basel II]] | ||
* [[Basel III]] | * [[Basel III]] | ||
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* [[Ordinary shares]] | * [[Ordinary shares]] | ||
* [[Own funds]] | * [[Own funds]] | ||
* [[Subordination]] | |||
* [[T2]] | * [[T2]] | ||
* [[Tier 1]] | * [[Tier 1]] | ||
* [[Tier 2]] | * [[Tier 2]] | ||
Revision as of 11:57, 10 November 2016
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.
