Bank capital to total assets (%)

This financial metric measures the proportion of a bank's capital and reserves relative to its total assets, reflecting the institution's ability to absorb losses and support growth. It encompasses various funding sources, including owner contributions, retained earnings, and regulatory capital categories, such as Tier 1 (common shares) and Tier 2 (subordinated debt). The inclusion of these capital tiers ensures a comprehensive view of a bank’s financial robustness, particularly during economic downturns. However, caution is warranted when comparing these figures internationally, as discrepancies in accounting practices, tax policies, and regulatory frameworks can lead to significant variations. Thus, while this ratio serves as a vital indicator of financial health, it is essential to consider the broader economic and regulatory context for meaningful analysis. Source: