Systemic risk: related pages

Financial engineering designed to evade regulation.

The ratio of a bank's capital to its assets. Regulators set minimum levels to protect both depositors and the economy.

Tangible common equity as a proportion of total assets.

The total assets a bank has, with the value of each asset adjusted by a factor that reflects its riskiness. Used to calculate capital adequacy ratios.

Value at risk

A measure of the risk of a portfolio; the loss that is unlikely to be exceeded in a given period of time with a given level of confidence.

Tier 2 capital

A broader measure than tier one capital. Share and subordinated debt capital with some adjustments.

Tier 1 capital

A measure of how much capital a bank has. Shareholders funds with some deductions.