Bank Analysis School eBook

Internal Use Only

Learning Objectives

1 – Purpose

2 – Capital Components

3 – Ratio Analysis

4 – Qualitative Considerations

Internal Use Only

There are Four Regulatory Capital Ratios

Numerator

Denominator

Tier One Leverage Ratio

Tier 1 Capital

Avg. Total Assets

Common Equity Tier 1 Capital Ratio

Common Equity Tier 1 Capital

Risk Weighted Assets

Tier 1 Capital Ratio

Tier 1 Capital

Risk Weighted Assets

Total Capital Ratio

Total Capital

Risk Weighted Assets

UBPR Page 11