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,
- What is the definition for the Tier 1 Risk Based Capital Ratio?
- 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?
- What is the trend of the Capital Ratio for each group of Banks?
- Do you see a difference in Capital that each group of Banks hold?
- Why are they different or similar?
- Why do Banks hold capital?