To be considered well-capitalized, a bank's minimum Tier 1 capital, total capital, and leverage capital must be:
A) 4%, 8%, and 3%, respectively.
B) 8%, 5%, and 3%, respectively.
C) 10%, 10%, and 10%, respectively.
D) 6%, 10%, and 5%, respectively.
E) 3%, 4%, and 8%, respectively.

Question

Quizplus · Accepted Answer

To be considered well-capitalized, a bank must have a Tier 1 capital ratio of at least 6%, a total capital ratio of at least 10%, and a leverage ratio of at least 5%.

To Be Considered Well-Capitalized, a Bank's Minimum Tier 1 Capital