Bank Stress Indicator Explorer
Understand the regulatory metrics that indicate bank financial health
Educational Information Only
This dashboard explains regulatory concepts for educational purposes. It does not provide bank-specific data or ratings. For information about specific institutions, consult official regulatory filings (Call Reports, FR Y-9C) or bank examination reports.
Capital Adequacy Metrics
Capital serves as a bank's cushion against losses. These ratios measure whether a bank has enough capital to absorb unexpected losses while continuing to lend and operate.
Common Equity Tier 1 (CET1) Ratio
The ratio of a bank's core equity capital to its risk-weighted assets
Regulatory Thresholds
Why This Matters
CET1 is the primary capital buffer against losses. Banks with low CET1 ratios have less cushion to absorb unexpected losses before becoming insolvent.
Tier 1 Capital Ratio
Core capital divided by risk-weighted assets
Regulatory Thresholds
Why This Matters
Tier 1 capital represents the bank's ability to continue operating while absorbing losses. It's the primary measure regulators use for Prompt Corrective Action.
Leverage Ratio
Tier 1 capital divided by total assets (not risk-weighted)
Regulatory Thresholds
Why This Matters
Risk-weighted ratios can be gamed by manipulating risk classifications. The leverage ratio provides a backstop that catches banks with concentrated but supposedly 'low-risk' portfolios.
Prompt Corrective Action Framework
How regulators intervene when banks fall below capital thresholds
Well Capitalized
No restrictions
Adequately Capitalized
Cannot accept brokered deposits
Undercapitalized
Must submit capital restoration plan
Significantly Undercapitalized
Asset growth restrictions, management changes
Critically Undercapitalized
Receivership within 90 days