Common equity

Common equity

Common Equity is a type of Banking Capital used to directly absorb losses.

Basel III

Under the new Basel III banking agreement large internationally active banks will be required to hold a minimum of 7% of their assets in common equity. This regulation is to be fully effective as of 1 Jan 2019.

Sources

Wall Street Journal Monday 13 Sep 2010 "Regulators Agree to Put New Restraints on Banks" p A2 continuation of front page article titled "Banks Get New Restraints" p A1


Wikimedia Foundation. 2010.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • Common equity — (book value)   The retained earnings and common stock earnings plus the balances in common equity reserves and all other common stock accounts. This also includes the capital surplus, the paid in surplus, the premium on common stocks, except… …   Energy terms

  • common equity — /ˌkɒmən ekwɪti/ noun ordinary shares in a company …   Dictionary of banking and finance

  • Tangible Common Equity - TCE — A measure of a company s capital, which is used to evaluate a financial institution s ability to deal with potential losses. Tangible common equity (TCE) is calculated by subtracting intangible assets, goodwill and preferred equity from the… …   Investment dictionary

  • Tangible Common Equity Ratio - TCE — A ratio used to determine how much losses a bank can take before shareholder equity is wiped out. The Tangible Common Equity (TCE) ratio is calculated by taking the value of the company s total equity and subtracting intangible assets, goodwill… …   Investment dictionary

  • Return on common equity —   The net income less preferred stock dividends, divided by the average common stock equity.   U.S. Dept. of Energy, Energy Information Administration s Energy Glossary …   Energy terms

  • Equity derivative — In finance, an equity derivative is a class of financial instruments whose value is at least partly derived from one or more underlying equity securities. Market participants trade equity derivatives in order to transfer or transform certain… …   Wikipedia

  • Equity Derivative — A derivative instrument with underlying assets based on equity securities. An equity derivative s value will fluctuate with changes in its underlying asset s equity, which is usually measured by share price. Investors can use equity derivatives… …   Investment dictionary

  • equity — eq·ui·ty / e kwə tē/ n pl ties [Latin aequitat aequitas fairness, justice, from aequus equal, fair] 1 a: justice according to fairness esp. as distinguished from mechanical application of rules prompted by considerations of equity comity between… …   Law dictionary

  • Equity — Common law Systèmes juridiques (Tous) Common law …   Wikipédia en Français

  • Common Law — Systèmes juridiques (Tous) Common law …   Wikipédia en Français

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”