Tier 1 Risk-Based Capital Ratio Law and Legal Definition

According to 12 CFR 208.41 [Title 12 -- Banks And Banking; Chapter Ii -- Federal Reserve System; Subchapter A -- Board Of Governors Of The Federal Reserve System; Part 208 -- Membership Of State Banking Institutions In The Federal Reserve System (Regulation H); Subpart D -- Prompt Corrective Action], tier 1 risk-based capital ratio means “the ratio of Tier 1 capital to weighted risk assets, as calculated in accordance with the Board's Capital Adequacy Guidelines for State Member Banks: Risk-Based Measure.”