[General] What kind of ratio is it talking about?

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michael147

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Behind the scenes in the coming days, the Fed will signal to each bank whether it can proceed with its most recent payout plan, submitted in January. If the Fed objects, a bank will have an opportunity to temper its proposals for dividend payments and share buybacks before releasing the plans publicly, potentially creating a tense face-off with regulators. For 17 of the 18 banks, their ratios are well above the 5 percent benchmark that the banks have to exceed for tier 1 common capital to get their capital plans approved. [full text]



What kind of ratio is it talking about?

Your help would be appreciated. Thank you so much.
 
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