bank management homework comparison of capital ratios for money center banks regional banks and community banks

Comparison of Capital Ratios for Money Center Banks, Regional Banks, and Community Banks.

You can find the list of U.S. Banks by assets size with the link below:

For this assignment, Money Center Banks are defined as banks with asset of $300,000,000,000 or greater. Regional Banks have assets of $10,000,000,000 to 50,000,000,000. Community Banks have assets of 1,000,000,000 or less.

Using S & P Global (SNL Financial)

Using SNL, find 5 Money Center Banks, 5 Regional Banks, 5 Community Banks.

Using Peer Analytics, Find Tier 1 to Risk Based Capital Ratio,

Discussion Questions

  1. What is the definition for the Tier 1 Risk Based Capital Ratio?
  2. What is the average for the Tier 1 Risk based Capital Ratio for the last quarter for the 5 Money Center Banks you chose, the 5 Regional Banks, and the 5 Community Banks?
  3. What is the trend of the Capital Ratio for each group of Banks?
  4. Do you see a difference in Capital that each group of Banks hold?
  5. Why are they different or similar?
  6. Why do Banks hold capital?