Common Equity Tier 1: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Expand and add links. Sources: linked pages.) |
imported>Doug Williamson (Amend link.) |
||
| Line 21: | Line 21: | ||
==See also== | ==See also== | ||
* [[ | * [[Additional Tier 1]] | ||
* [[Bank supervision]] | * [[Bank supervision]] | ||
* [[Basel II]] | * [[Basel II]] | ||
Revision as of 12:02, 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.
