Common Equity Tier 1 and Net interest: Difference between pages

Revision as of 15:41, 21 August 2013

1.

Tax.

Interest stated after offsetting tax effects, if any.

In this sense, net interest receivable means interest receivable stated after deducting any tax payable thereon.

In this context, net interest payable means interest payable stated after offsetting any tax relief enjoyed on the interest expense.

2.

Interest (usually) payable, stated after deducting other offsetting interest (usually) receivable in the same period.

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-''Banking.''
+.
-(CET1).
+''Tax.''
-Common Equity Tier 1 capital.
+Interest stated after offsetting tax effects, if any.
+In this sense, ''net interest receivable'' means interest receivable stated after deducting any tax payable thereon.
-The highest quality form of regulatory capital under Basel III and CRD IV.
+In this context, ''net interest payable'' means interest payable stated after offsetting any tax relief enjoyed on the interest expense.
-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.
+Interest (usually) payable, stated after deducting other offsetting interest (usually) receivable in the same period.
-For this reason, it has the best loss-absorbing capacity and quality from the perspectives of the bank and its supervisors.
+== See also ==
-Sometimes known as Core Equity Tier 1.
+* [[Gross interest]]
-==See also==
-* [[Additional Tier 1]]
-* [[Bank supervision]]
-* [[Basel II]]
-* [[Basel III]]
-* [[Capital adequacy]]
-* [[Capital Adequacy Directive]]
-* [[CET1 ratio]]
-* [[Common equity]]
-* [[Core Tier 1 capital]]
-* [[CRD IV]]
-* [[Equity]]
-* [[Ordinary shares]]
-* [[Own funds]]
-* [[Subordination]]
-* [[T2]]
-* [[Tier 1]]
-* [[Tier 2]]