The minimum Tier 1 capital ratio. 4.5% of that must be common equity tier 1 capital (CET1). Tier 2 capital is composed of any supplementary capital the bank has, such as loan-loss and revaluation ...

This was originally 8%, but a conservation buffer of 2.5% was added in 2019. Example of the Capital-To-Risk Weighted Assets Ratio Assume bank ABC has tier 1 one capital of $10 million and tier 2 ...

The minimum Tier 1 capital ratio. 4.5% of that must be common equity tier 1 capital (CET1). Tier 2 capital is composed of any supplementary capital the bank has, such as loan-loss and revaluation ...