Tier 1 Leverage Ratio Simple Calculator
Audit explicit Tier1 capital/deductions and day-weighted leverage exposure adjustment ledgers, signed overdeduction retained; not Tier1/risk-weighted-asset ratio. Caller independently verifies edition, jurisdiction, applicability and one currency; screening does not establish legal compliance, coverage or bank approval.
Description
A leverage ratio relates net capital to a defined exposure measure.
A leverage ratio relates net capital to a defined exposure measure.1
Time weighting, deductions and adjustments differ from a simple point-in-time balance ratio. Use Tier 1 Leverage Ratio Simple Calculator to evaluate the supplied inputs under the model explained below.
When to use Tier 1 Leverage Ratio Simple Calculator
Use Tier 1 Leverage Ratio Simple Calculator to evaluate the supplied inputs under the model explained below. Establish the currency and minor-unit convention, measurement period and applicable transaction or institution context.
How to use Tier 1 Leverage Ratio Simple Calculator and understand its results
- Establish the currency and minor-unit convention, measurement period and applicable transaction or institution context.
- Enter Observed tier one capital components minor, Caller tier one deductions minor, Observed exposure balances minor, Observed exposure period days, Caller exposure adjustment minor using the field table and validation rules below, then run the tool.
- Read Caller net tier one minor, Day weighted adjusted exposure minor, Caller tier one leverage ratio; interpret the units, signs, ordering and unknown-value placeholders described below.
- Correct reported input errors and rerun. Apply successful results according to their specific meanings and check the assumptions before using them in a decision.
| Input field | Meaning | Value type | Requirement |
|---|---|---|---|
| observedTierOneCapitalComponentsMinor | Observed tier one capital components minor | array of number | Required; constraints below |
| callerTierOneDeductionsMinor | Caller tier one deductions minor | array of number | Required; constraints below |
| observedExposureBalancesMinor | Observed exposure balances minor | array of number | Required; constraints below |
| observedExposurePeriodDays | Observed exposure period days | array of number | Required; constraints below |
| callerExposureAdjustmentMinor | Caller exposure adjustment minor | number | Required; constraints below |
Enter nonnegative integer capital components, deductions and exposure balances no greater than 1000000000000 each, aligned positive integer exposure days from 1 to 36600, and a nonnegative integer exposure adjustment in the monetary range. Net capital is component sum minus deduction sum and may be negative. Round the day-weighted exposure to a whole minor unit, add the adjustment and require positive adjusted exposure. Return capital/exposure as a fraction. Component and deduction arrays need not align with each other or the exposure records; no eligibility or regulatory requirement is selected.
netCapital=Σcapital−Σdeductions; adjustedExposure=round(Σexposure×days/Σdays)+adjustment; ratio=netCapital/adjustedExposure Use the field order, units and branch conditions described above.
| Output field | Meaning | Value type |
|---|---|---|
| callerNetTierOneMinor | Caller net tier one minor | number |
| dayWeightedAdjustedExposureMinor | Day weighted adjusted exposure minor | number |
| callerTierOneLeverageRatio | Caller tier one leverage ratio | number |
{
"input": {
"observedTierOneCapitalComponentsMinor": [
200,
50
],
"callerTierOneDeductionsMinor": [
20
],
"observedExposureBalancesMinor": [
1000,
2000
],
"observedExposurePeriodDays": [
1,
3
],
"callerExposureAdjustmentMinor": 50
},
"output": {
"callerNetTierOneMinor": 230,
"dayWeightedAdjustedExposureMinor": 1800,
"callerTierOneLeverageRatio": 0.12777777777777777
}
}Limitations and assumptions
Time weighting, deductions and adjustments differ from a simple point-in-time balance ratio. Apply the exact scope and assumptions explained above.
All listed fields require explicit values. Unexpected fields, incorrect types, nonfinite numbers and sparse arrays fail validation. Domain-specific bounds, alignments and supported tokens are explained above; extremely large inputs or outputs can also be rejected. Input errors differ from successful false results, empty match lists and unknown-evidence placeholders.
Alternative or Complementary methods
Use Yield On Earning Assets Computed Calculator for a related task: Yield on earning assets relates matched interest income to a time-weighted asset balance.
Use ROA Return On Assets Bank Calculator for a related task: Bank return on assets relates signed net income to an adopted average asset measure.
References
-
Tier 1 Leverage Ratio Simple Calculator — tool.io
Similar or alternative tools
- Yield On Earning Assets Computed Calculator
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