CET1pääomaa
CET1pääomaa, or Common Equity Tier 1 capital, is a key metric in banking regulation. It represents the highest quality of capital that a bank can hold. This capital is primarily composed of common shares, retained earnings, and other disclosed reserves. CET1pääomaa is considered "common equity" because it absorbs losses without triggering a bank's insolvency.
The purpose of CET1pääomaa is to ensure that banks have a strong buffer against unexpected losses, thereby
A higher CET1 ratio indicates a stronger and more resilient bank. In the event of financial distress,