BANKING
Common Equity Tier 1 Ratio
Measures highest-quality regulatory capital relative to risk-weighted assets.
Formula
CET1 ratio = CET1 capital / Risk-weighted assets ×100
Variables: CET1 capital; RWA
What it means
Measures highest-quality regulatory capital relative to risk-weighted assets.
Example
CET1 capital 15 and RWA 100 imply a 15% ratio.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Formulas
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.