Examples of Tier 1 Leverage Ratio in a sentence
The six financial ratios are: Tier 1 Leverage Ratio; Loans past due 30–89 days/gross assets; Nonperforming assets/gross assets; Net loan charge-offs/gross assets; Net income before taxes/risk-weighted assets; and the Adjusted brokered deposit ratio.
In fact, at the 5% level of significance, the only capital variable in Table 3 that performs statistically significantly better than the intercept-only model is the Tier 1 Leverage Ratio.22 Table 3 also presents evidence on the impact of including alternative capital measures along with the sub-debt spread (columns 6-9).23 The results suggest that with the possible exception of the Tier 1 Leverage Ratio, little additional information is being added by including the alternative capital ratios.
CAMEL is significantly correlated with the Sub-debt spread over Treasuries, Tier 1 capital to risk-weighted exposure, and the Tier 1 Leverage Ratio, but not with the Total risk based capital ratio or the PCA capital adequacy status.Table 2 provides Spearman rank correlations for the various yield spreads used in the analysis.
Four capital adequacy measures are generated: 1) Total risk based capital ratio, 2) Tier 1 Leverage Ratio, 3) Tier 1 capital to risk-weighted exposure, and 4) PCA capital adequacy status.
The Basel III rules establish minimum capital ratios for a Tier 1 Leverage Ratio, a Common Equity Tier 1 Risk-based Capital Ratio, a Tier 1 Risk-based Capital Ratio, and a Total Risk-based Capital Ratio.