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.