what does a low cet1 ratio mean 
a low cet1 ratio implies an insufficient level of tier 1 capital in such a case a bank may not be able to absorb a financial shock and may need to be bailed out quickly in the event of a financial crisis the bottom linecommon equity tier 1 cet1 is a component of tier 1 capital covering bank holdings such as cash and stock it is the highest quality of regulatory capital and banks are expected to meet minimum cet1 ratios as established by financial regulators any losses incurred by banks during a crisis are first deducted from cet1 