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To be adequately capitalized, what are the bank's CET1, Tier I, and total risk-based capital requirements under Basel III?

User JanBrus
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Final answer:

To be adequately capitalized, a bank must meet the CET1, Tier 1, and total risk-based capital requirements under Basel III.

Step-by-step explanation:

To be adequately capitalized under Basel III, a bank must meet certain capital requirements. These include the Common Equity Tier 1 (CET1) capital requirement, the Tier 1 capital requirement, and the total risk-based capital requirement. The CET1 capital requirement is the minimum level of core capital a bank must have. It is expressed as a percentage of a bank's risk-weighted assets. The Tier 1 capital requirement includes CET1 capital and additional Tier 1 capital. The total risk-based capital requirement includes Tier 1 capital and Tier 2 capital.

User Sunspots
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