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How is RWA calculated?

RWA is a Risk-Weighted Asset. It is calculated by multiplying the exposure amount by the relevant risk weight for the type of asset or loan. The... View Article

What is tier 3 capital?

Tertiary capital is the tier 3 capital. This capital is held on to by many banks to support their risks derived from trading activities, foreign... View Article

What is tier 2 capital?

Banks need required reserves, and one of the important components of these required reserves is tier 2 capital. Tier 2 capital is considered to... View Article

What is tier 1 capital?

From a regulators perspective, it is the core measurement of a banks’ financial strength. Retained earnings and shareholders' equity is... View Article