Common equity tier 1 capital ratio at HSBC 2013-2019

The common equity tier 1 capital ratio of HSBC was to 14.7 percent in 2019. This was up from 14 percent the year earlier, the highest ratio in the past six years.

What is the tier 1 capital ratio?

Tier 1 capital is essentially the amount of money a bank has on hand in case it needs to cover unexpected expenses from risky transactions. Core capital is mostly the combination of retained earnings and common stock. This statistic reports the value of this common stock against risk divided by the risk-weighted total of HSBC’s assets. This is important because losses in these assets or a sudden uptick in withdrawals can easily be covered by tier 1 capital, making this a measure of a bank’s robustness.

Importance of core capital

Banks keep core capital to guard against unexpected expenses. In the very short run, commercial banks can also borrow from the central bank’s discount window for a low interest rate. In the United States, this is the federal funds rate. Without such reserves and financing options, a run on deposits or a large default on assets can lead to insolvencies.

Common equity tier 1 capital ratio at HSBC from 2013 to 2019

Tier 1 capial ratio
201914.7%
201814%
201714.5%
201613.6%
201511.9%
201410.9%
201310.8%
Loading statistic...
You need to log in to download this statistic
Register for free
Already a member?
Log in
Show detailed source information?
Register for free
Already a member?
Log in
Source

Release date

February 2020

Region

Worldwide

Survey time period

2013 to 2019

Statista Accounts: Access All Statistics. Starting from $708 / Year
Basic Account
Get to know the platform

You only have access to basic statistics.

Premium Account
Your perfect start with Statista
  • Instant access to 1m statistics
  • Download in XLS, PDF & PNG format
  • Detailed references

$59 / Month *

Corporate Account
Full access

Corporate solution including all features.

* All products require an annual contract.
   Prices do not include sales tax.

Statistics on "HSBC"

Statista Accounts: Access All Statistics. Starting from $708 / Year
Learn more about how Statista can support your business.