If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)

Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Nama Capital/Core Equity Ratios

alan4cult · 2009-10-29 15:37:02

Hi, I've been reading some articles about NAMA and they mention the core equity ratio and the capital ratio. What do these two ratios mean? And what should there levels be i.e. should they both be high or one high and the other low. Some articles say the capital ratio should be 10% or higher and the core equity no more…

29-10-2009 3:37pm

#1

alan4cult

Registered Users, Registered Users 2 Posts: 1,583 ✭✭✭

Join Date: December 2006

Posts: 1426

Hi,

I've been reading some articles about NAMA and they mention the core equity ratio and the capital ratio. What do these two ratios mean?

And what should there levels be i.e. should they both be high or one high and the other low. Some articles say the capital ratio should be 10% or higher and the core equity no more that 4%. Should they not both be high?

0

Comments

#2 29-10-2009 3:46pm

Économiste Monétaire

Closed Accounts Posts: 2,208 ✭✭✭

Join Date: March 2008

Posts: 2015

Basically, your capital ratio is the amount of equity and reserves (tier 1 capital) you have as a % of the total assets. The core equity ratio is just the tier 1 capital ratio minus reserves. How high they should be "depends," some regulators have different stated minimum levels—there are also differences in how you calculate risk-weighted assets.

0