Common Equity Tier 1
From ACT Wiki
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.