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A good way to measure a bank's regulatory capital is by looking at its common equity tier 1 (CET1) capital ratio, which measures a bank's core capital expressed as a percentage of total risk ...
The total-debt-to-total-assets ratio or assets to liabilities ratio, is used to measure a company's performance. Here's how to calculate and why it matters.
The bank must maintain a CET1 ratio of 8.68%, Tier 1 capital ratio of 10.51%, and a Total Capital ratio of 12.94%, with a leverage ratio requirement of 3%.
You would then divide the $40 million in total liabilities by the $100 million in total assets. That will give the company a total-debt-to-total-assets ratio of 0.40, or 40% when multiplied by 100.