CET1 and Real exchange rate: Difference between pages

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''Banking.''
The value of a currency in terms of real purchasing power.  


Common Equity Tier 1 capital.


The highest quality form of regulatory capital under Basel III.
It is calculated by comparing the price of a hypothetical market basket of goods in two different countries, translated into the same currency at the prevailing exchange rate.


It includes common equity shares and share premium, together with most equity reserves, less regulatory deductions.
It is useful in measuring the price competitiveness of domestic goods in international markets.




Sometimes known as ''Core'' Equity Tier 1.
== See also ==
* [[Currency]]
* [[Exchange rate]]
* [[Real]]


 
[[Category:Manage_risks]]
== See also ==
* [[AT1]]
* [[Basel II]]
* [[Basel III]]
* [[Capital adequacy]]
* [[Capital Adequacy Directive]]
* [[CET1 ratio]]
* [[Common equity]]
* [[Core tier 1 capital]]
* [[CRD IV]]
* [[Equity]]
* [[Own funds]]
* [[T2]]
* [[Tier 1]]
* [[Tier 2]]

Latest revision as of 23:46, 11 March 2023

The value of a currency in terms of real purchasing power.


It is calculated by comparing the price of a hypothetical market basket of goods in two different countries, translated into the same currency at the prevailing exchange rate.

It is useful in measuring the price competitiveness of domestic goods in international markets.


See also

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