Page 238 - Flip Banks TG

Tier 1 Common Capital Ratio:

Regulators assess a bank’s strength first by looking at the

size and composition of its capital base. The most important

metric in this regard is the tier 1 common capital ratio,

which compares a bank’s core equity capital (common stock

less most types of preferred stock) to its risk-weighted

assets. The regulatory minimum is 4.5%.