CET1suhteeksi

CET1suhteeksi is a concept in Finnish financial regulation and accounting, referring to the relationship between the Tier 1 capital of a bank and its solo capital requirement.

From a regulatory perspective, CET1suhteeksi is defined as the ratio of the Common Equity Tier 1 (CET1) capital of a bank to its solo capital requirement. In other words, it is a measure of how much CET1 capital a bank has in relation to the regulatory requirements for its solo risk-weighted assets.

The CET1suhteeksi ratio is an important metric for banks, as it reflects their solvency and risk profile. According to Finnish financial regulations, banks are required to maintain a minimum CET1suhteeksi ratio of 5.5% to remain compliant with regulatory capital requirements.

This ratio is used to assess the bank's ability to absorb potential losses and maintain its capital base. The higher the CET1suhteeksi ratio, the stronger the bank's capital position and its ability to withstand unexpected losses.

In practice, the CET1suhteeksi ratio is used by regulators to monitor and supervise the solvency and financial stability of banks operating in Finland. The ratio is also used by banks to report their financial performance and status to their stakeholders.

Overall, the CET1suhteeksi ratio is a significant measure of a bank's financial health and stability, reflecting the quality and quantity of its equity capital in relation to its regulatory capital requirements.