medium · Corporate Credit Analysis
A bank analyst calculates a bank's Common Equity Tier 1 (CET1) ratio. The bank has $20B in CET1 capital. Its assets include $100B in corporate loans (100% risk weight) and $200B in AAA-rated sovereign debt (0% risk weight).
What is the bank's CET1 ratio?
- 6.7%
- 10.0%
- 20.0%
- 15.0%
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