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    The document provides examples of calculating capital adequacy ratios for two banks. For the first bank, the common equity tier 1 capital ratio is 27.48%, above the minimum requirement of 4.5%. For the second bank, the capital adequacy ratio is 24.68%, the tier 1 capital ratio is 24.41%, and the common equity tier 1 capital ratio is also 24.41%, all above their respective minimum requirements of 8%, 6%, and 4.5%.

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    The document provides examples of calculating capital adequacy ratios for two banks. For the first bank, the common equity tier 1 capital ratio is 27.48%, above the minimum requirement of 4.5%. For the second bank, the capital adequacy ratio is 24.68%, the tier 1 capital ratio is 24.41%, and the common equity tier 1 capital ratio is also 24.41%, all above their respective minimum requirements of 8%, 6%, and 4.5%.

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    11 views1 page

    Examples

    Uploaded by

    yuhu
    The document provides examples of calculating capital adequacy ratios for two banks. For the first bank, the common equity tier 1 capital ratio is 27.48%, above the minimum requirement of 4.5%. For the second bank, the capital adequacy ratio is 24.68%, the tier 1 capital ratio is 24.41%, and the common equity tier 1 capital ratio is also 24.41%, all above their respective minimum requirements of 8%, 6%, and 4.5%.

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    of 1

    EXAMPLE 1

    Capital based… 2. 357. 584 BGN


    Common equity capital Tier 1 coincided with the value of the TIER 1 capital 2. 343. 258
    BGN
    Risk-weighted Assess are 8.528.002 BGN
    Tier equity tier 1 capital
    Capital adequacy

    Common Capital adequacy = (own capital/common risk exposure risk-weighted assets)


    x 100 = %
    Tier 1 capital ratio = (Tier 1 capital/risk-weighted assets) x 100 = % should not be less
    than 6%
    Common on equity tier 1 capital ratio = (common equity tier 1 capitl/ risk-weighted
    assest) x100
    Not less than 4.5%

    Example:
    (2.343.258/8528002) x100 = 27.48% > 4.5%

    EXAMPLE 2

    2.178.132 BGN
    the common equity TIER 1 capital coincided with the value of the TIER 1 capital and it
    is 2.153.895BGN
    risk-weighted assets are 8.825.466 BGN
    we want to estimate the common equity TIER 1 capital ratio, capital adequacy ratio

    CAPITAL ADEQUACY RATIO= (capital Base/risk-weighted assets) x 100 =


    = (2.178.132/8.825.466) x100 = 24.68% > 8%

    TIER 1 RATIO= (Tier 1 capital/risk-weighted assets) x 100 = (2.153.895/8.825.466) x


    100= 24.41% > 6%

    COMMON EQUITY TIER 1 CAPITAL RATIO= (common equity Tier 1 capital/ risk-
    weighted assets) x 100 = (2.153.895/8.825.466)x100= 24.41% > 4.5%

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