Tier 1 Capital Ratio (Tier 1 Capital Ratio): Tier 1 Capital Ratio Asset

Tier 1 Capital is referred to as core capital, including the physical capital, capital volume, surplus convolutional, undistributed profit.The risk assets are the number of banks based on the risk factors of different assets.Thus, when banks demand higher capital ratios, banks can take risky assets (such as lending) to reduce passively.