what is the tier 1 common capital ratio 
tier 1 common capital ratio is a measurement of a bank s core equity capital compared with its total risk weighted assets and signifies a bank s financial strength the tier 1 common capital ratio is utilized by regulators and investors because it shows how well a bank can withstand financial stress and remain solvent tier 1 common capital excludes any preferred shares or non controlling interests which makes it differ from the closely related tier 1 capital ratio the formula for the tier 1 common capital ratio is t 1 c c c t 1 c p s n i t r w a where t 1 c c c tier 1 common capital ratio t 1 c tier 1 capital p s preferred stock n c noncontrolling interests t r w a total risk controlling assets begin aligned t1ccc dfrac t1c ps ni trwa textbf where t1ccc text tier 1 common capital ratio t1c text tier 1 capital ps text preferred stock nc text noncontrolling interests trwa text total risk controlling assets end aligned t1ccc trwat1c ps ni where t1ccc tier 1 common capital ratiot1c tier 1 capitalps preferred stocknc noncontrolling intereststrwa total risk controlling assets investopedia dennis madamba