Federal Reserve Bulletin

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2005

Figure 13. Regulatory capital ratios, 1990-2005. Data plotted as curves. The leverage ratio begins in 1990 at about 6.5 percent, rises to about 7.5 percent by 1993, then gradually rises further to reach about 8 percent in 2005. The tier 1 ratio begins in 1990 at about 8 percent, rises to reach about 10.5 percent in 1993, declines to about 9.5 percent by 1998, then rises, on net, to about 10 percent in 2005. The total (tier 1 plus tier 2) ratio begins in 1990 at about 10 percent, rises to reach about 13 percent in 1993, declines to about 12 percent by 2000, then rises slightly and declines again to reach a little over 12 percent in 2005.

Note: The data are as of year-end. For the components of the ratios, refer to text notes 11 and 12.  Return to article