Spot the differences: Tier 1 versus Equity for U.S. Bank Holding Companies
I embarked on a nice research result that may feed into the Basel discussion on the risk-based solvency framework (clik here for the DP).
One would think that Tier 1 capital serves a solvency purpose, and therefore it would present a more conservative picture of a bank's solvency.
For U.S. Bank Holding Companies over 2001-2012, the graph shows a different…
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