Tier 1 Leverage Ratio

Tier 1 Leverage Ratio,

Tier 1 Leverage Ratio: What is the Meaning of Tier 1 Leverage Ratio?

A simple definition of Tier 1 Leverage Ratio is: Leverage ratio 1 measures the capital of a bank in relation to total assets. This relation refers specifically to the benefit of the bank on the basis of assets, especially Tier 1 capital. Core capital is an asset that can be easily liquidated if a bank needs capital during a financial crisis. Therefore, the Level 1 benefit ratio is a measure of a bank's short-term financial health.

  • Level 1 leverage ratio compares with a bank's total assets of Level 1 capital. Evaluation of bank loans.
  • Bank regulators use a Tier 1 index to ensure that banks have a hard time passing certain required stress tests.
  • Interest rates above 5% are an indication of the bank's solid financial base.

Literal Meanings of Tier 1 Leverage Ratio


Meanings of Tier:
  1. The surfaces of lines or structures, usually in a series of lines, pile up with each other and slowly descend or descend.

Sentences of Tier
  1. Chair steps

Synonyms of Tier

bank, row, line, rank


Meanings of Leverage:
  1. The application of force by a force or object used by a lever.

  2. The relationship between the company's credit capital (debt) and the value of its joint stock (share capital).

  3. Use borrowed capital for (investment) with the expectation of higher return than interest.

  4. Use as much as (something).

Sentences of Leverage
  1. My shovel hit hard, which did not respond to the lever

  2. Without a clear legal claim to their property, they have features that cannot be used as collateral for a loan.

  3. The organization should use its vital resources

Synonyms of Leverage

grasp, purchase, hold, grip


Meanings of Ratio:
  1. A quantitative relationship between two quantities that indicates how many times one value contains another or is added to another.

Sentences of Ratio
  1. The employment rate for men and women is 8 to 1

Synonyms of Ratio

correlation, correspondence, comparative extent, quantitative relation, comparative number, proportion, relationship, balance