Running head: BANK MANAGEMENT
Bank Management Homework
Course Number and Section:
COMPARISON OF CAPITAL RATIOS
According to Kenton & Hayes (2019), Tier 1 risk-based capital ratio is the ratio of core
capital 1 tier of the bank in terms of equity capital and the disclosed reserves to its total risk of
weighted assets. It is the primary indicator for the bank's financial strength introduced in the
context of the third Basel accord as an agreement on the bank regulations. To protect themselves
from unforeseen losses, especially those relating to the financial crisis, banks must keep their
Tier 1 capital ratio above the provided threshold.
The five Money Center Banks that I selected are JPMo...
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