To calculate a bank's tier 1 capital ratio, divide its tier 1 capital by its total risk-weighted assets. The minimum Tier 1 ...

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The capital used to calculate the capital adequacy ratio is divided into two tiers: Tier 1 and Tier 2. Tier-1 Capital Tier-1 capital, or core capital, is comprised of equity capital, ordinary ...

You can calculate a bank's capital to risk-weighted assets ratio in Microsoft Excel once you determine its tier 1 and tier 2 capital and its risk-weighted assets. First, let's define our variables.