Under Basel III, Tier I capital measures the market value of common equity plus the amount of perpetual preferred stock plus minority equity interest held by the bank in subsidiaries minus goodwill.

Question

Quizplus · Accepted Answer

Tier I capital under Basel III includes common equity, retained earnings, and other comprehensive income, but it does not include minority equity interest or perpetual preferred stock. It is primarily focused on core equity capital.

Under Basel III, Tier I Capital Measures the Market Value