Profits and Balance Sheet Developments at U.S. Commercial Banks in 2006
Figure 13. Regulatory capital ratios, 1990-2006. Data plotted as curves. The leverage ratio begins in 1990 at about 6.5 percent, rises to about 7.5 percent by 1993, and then gradually rises further, to reach about 8 percent in 2006. 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 2002, and has held there through 2006. 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 ranges between 12.3 percent and 12.8 percent through 2006.
NOTE: The data are as of year-end. For the components of the ratios, refer to text notes 12 and 13 .