In: Finance
Which of the following items on a bank's balance sheet count towards regulatory capital?
| Common stock |
| Hybrid Preferred Stock |
| Sub debt |
| Cash |
| repo |
Regulatory capital is the amount of capital requirement which the bank or financial institution should have as required by the financial regulators.
It depends upon the risk exposure and Tier 1 & Tier 2 capital.
Common stocks/equity are a part of it.
Answer: Common stock.