What is E*TRADE Financial Capital Adequacy Tier - Tier 1 Ratio %?
Capital Adequacy Tier - Tier 1 Ratio % is the ratio of a bank’s core tier 1 capital, which includes its equity capital and disclosed reserves, to its total risk-weighted assets. It is a key measure of a bank's financial strength and should not fall lower than 6% as per Basel III rules.
E*TRADE Financial's Capital Adequacy Tier - Tier 1 Ratio % for the quarter that ended in Jun. 2020 was 34.90%
, which is lower than
35.10% for the pervious quarter ended in Mar. 2020.
E*TRADE Financial's Capital Adequacy Tier - Tier 1 Ratio % for the annual that ended in Dec. 2019 was 37.90%
, which is higher than
37.40% for the pervious year ended in Dec. 2018.
The historical rank and industry rank for E*TRADE Financial's Capital Adequacy Tier - Tier 1 Ratio % or its related term are showing as below:
ETFC's Capital Adequacy Tier - Tier 1 Ratio % is not ranked *
in the Capital Markets industry.
Industry Median: * Ranked among companies with meaningful Capital Adequacy Tier - Tier 1 Ratio % only.
E*TRADE Financial Capital Adequacy Tier - Tier 1 Ratio % Historical Data
The historical data trend for E*TRADE Financial's Capital Adequacy Tier - Tier 1 Ratio % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
E*TRADE Financial Capital Adequacy Tier - Tier 1 Ratio % Chart
E*TRADE Financial (NAS:ETFC) Capital Adequacy Tier - Tier 1 Ratio % Calculation
Capital Adequacy Tier - Tier 1 Ratio % is calculated as
Capital Adequacy Tier - Tier 1 Ratio %
=
Tier 1 Capital
/
Total Risk Weighted Assets
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
E*TRADE Financial (NAS:ETFC) Capital Adequacy Tier - Tier 1 Ratio % Explanation
Tier 1 capital, or core capital, consists of a bank's common stock, retained earnings, accumulated other comprehensive income, noncumulative perpetual preferred stock and any regulatory adjustments to those accounts. The tier 1 capital ratio is the ratio of a bank’s core capital vs. its total risk-weighted assets (RWAs). The risk-weighted assets are calculated by multiplying the assets that the company holds by their corresponding weights for credit risk (the weight is usually developed by the central bank).
The tier 1 capital ratio is the basis for the Basel III international capital and liquidity standards. The standard is used to force banks to increase capital buffers and ensure they can withstand financial distress before they become insolvent. Basel III rules stipulate that the Tier 1 capital ratio has to be at least 6% and the equity component of Tier 1 capital has to have at least 4.5% of RWAs. A higher Tier 1 ratio suggests that the company has more capital to pay down deposits and is less likely to become insolvent.
E*TRADE Financial Capital Adequacy Tier - Tier 1 Ratio % Related Terms
Thank you for viewing the detailed overview of E*TRADE Financial's Capital Adequacy Tier - Tier 1 Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
E*TRADE Financial (E*TRADE Financial) Business Description
E-Trade is one of the largest direct-to-investor platforms in the United States and housed over $500 billion of invested assets and client cash at the end of 2019. The company generates interest income on noninvested cash on its platform, trading commissions, service charges including payment for order flow, and fees from stock plan administration. Almost all the company's revenue is generated within the U.S.
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