Common Equity Tier 1CET1
साधारण शेयर पुँजी (CET1)
Also called CET1 Ratio, Common Equity
Formula
CET1 ratio = Common Equity Tier 1 capital / Total risk-weighted exposure × 100
- Numerator
- Common Equity Tier 1 capital after regulatory deductions
- Denominator
- Total risk-weighted exposure
NRB limit: Minimum CET1 4.5% of RWE; 7% including the 2.5% capital conservation buffer (Class A and national-level Class B under CAF 2015)
NRB Unified Directive 2082, Directive 1, Annex 1.1 (CAF 2015, para 2.4) · applies from . Limits change with each monetary policy and directive, so check the latest notice before the exam.
The highest-quality part of Tier 1 capital, made of common shares, share premium, statutory general reserve, retained earnings and other free reserves, net of regulatory deductions.
What the value tells you
A higher CET1 ratio means more first-loss, permanent capital; a ratio inside the buffer range restricts dividends and bonuses.
Explained
Basel III made CET1 the core measure of a bank's strength because it absorbs losses first and has no repayment or fixed dividend obligation.
Deductions from CET1 under CAF 2015 include goodwill and other intangibles, deferred tax assets, investments in certain equity of other financial institutions and other items NRB specifies; deducted items are exempt from risk weighting.
Requirements under CAF 2015:
- minimum CET1 ratio 4.5% of RWE,
- capital conservation buffer 2.5% in CET1, so CET1 plus CCB is 7%,
- any countercyclical buffer is also in CET1.
CET1 used to meet the buffer cannot also be counted toward the 4.5% minimum, and a bank without positive earnings and with CET1 below 7% should not make net distributions.
Example
CET1 Rs 7.5 billion and RWE Rs 100 billion give a CET1 ratio of 7.5%, which covers the 4.5% minimum plus the 2.5% buffer with 0.5% to spare.
साधारण शेयर, शेयर प्रिमियम, साधारण जगेडा कोष, सञ्चित मुनाफा र अन्य स्वतन्त्र जगेडाबाट नियामकीय कट्टी घटाएर बन्ने प्राथमिक पुँजीको सबैभन्दा उच्च गुणस्तरको भाग।
अनुपातले के देखाउँछ
CET1 अनुपात बढी हुनु भनेको पहिलो नोक्सानी थेग्ने स्थायी पुँजी बढी हुनु हो; बफर दायराभित्र परे लाभांश र बोनसमा रोक लाग्छ।
व्याख्या
बासेल ३ ले CET1 लाई बैंकको बलियोपनको मुख्य मापक बनायो, किनकि यसले सबैभन्दा पहिले नोक्सानी थेग्छ र यसमा फिर्ता वा निश्चित लाभांशको दायित्व हुँदैन।
CAF 2015 अनुसार CET1 बाट ख्याति तथा अमूर्त सम्पत्ति, स्थगन कर सम्पत्ति, अन्य वित्तीय संस्थाका केही शेयर लगानी र राष्ट्र बैंकले तोकेका अन्य रकम कट्टा गरिन्छ।
CAF 2015 को आवश्यकता:
- न्यूनतम CET1 अनुपात जोखिम भारित एक्सपोजरको ४.५ प्रतिशत,
- २.५ प्रतिशत पुँजी संरक्षण बफर पनि CET1 मै, त्यसैले CET1 र बफर गरी ७ प्रतिशत,
- प्रतिचक्रीय बफर पनि CET1 मै।
सकारात्मक आम्दानी नभएको र CET1 ७ प्रतिशतभन्दा कम भएको बैंकले वितरण गर्न हुँदैन।
उदाहरण
CET1 रु ७.५ अर्ब र जोखिम भारित एक्सपोजर रु १०० अर्ब भए CET1 अनुपात ७.५ प्रतिशत हुन्छ, जसले ४.५ प्रतिशत न्यूनतम र २.५ प्रतिशत बफर पूरा गरी ०.५ प्रतिशत बढी देखाउँछ।
Related
Sources
- NRB Unified Directive 2082 (A, B and C class), Annex 1.1 Capital Adequacy Framework 2015Nepal Rastra Bank
Updated