Capital Ratios vs the Minimums: CET1, Tier 1 & Total
This lesson is part of the course
In this lesson
You total Northmere's RWA across credit, market and operational risk, calculate the three capital ratios, the surplus over each minimum and how much RWA the bank could add before the first minimum binds.
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Lessons in this course
- Risk Weights by Exposure Class & Risk-Weighted Assets Locked
- Off-Balance-Sheet Items: Credit Conversion Factors Locked
- CET1, Tier 1 & Total Capital: Composition and Deductions Locked
- Capital Ratios vs the Minimums: CET1, Tier 1 & Total Locked
- Capital Buffers & the Distance to the MDA Trigger Locked
- The Leverage Ratio: Tier 1 ÷ Exposure Measure Locked
- Capital Planning: RWA Growth vs Retained Earnings over 3 Years Locked
- Stress Scenario: CET1 Depletion and the Trough Ratio (Chart) Locked