Bank capital to assets ratio (%)

This financial metric assesses the proportion of a bank’s capital and reserves relative to its total assets, providing insight into its financial stability and risk management capabilities. Bank capital encompasses various forms, including equity contributions from owners, retained earnings, and reserves set aside for potential losses. These components not only reflect the bank's ability to absorb unexpected financial shocks but also its overall strength in instilling confidence among depositors and investors. By incorporating tier 1 capital—such as paid-up shares and common stock—alongside tier 2 and tier 3 capital, the ratio illustrates the institution's commitment to maintaining regulatory capital standards. In essence, this ratio serves as an essential indicator of a bank's resilience, sustainability, and operational integrity in an increasingly complex financial landscape. Source: