An analyst gathers the following information regarding a bank's capital ratios:
- Common equity Tier 1 capital ratio: 4.6%
- Tier 1 capital ratio: 5.7%
- Total capital ratio: 7.9%
The Tier 2 capital ratio is: | Chartered Financial Analyst Level 2 Quiz - LeetQuiz
Chartered Financial Analyst Level 2
Explanation:
The Tier 2 capital ratio is calculated as the difference between the Total capital ratio and the Tier 1 capital ratio.
Calculation:
Total capital ratio = 7.9%
Tier 1 capital ratio = 5.7%
Tier 2 capital ratio = 7.9% - 5.7% = 2.2%
Therefore, the Tier 2 capital ratio is 2.2%.
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An analyst gathers the following information regarding a bank's capital ratios:
