Profits and Balance Sheet Developments at U.S. Commercial Banks in 2007
Figure 14. Regulatory capital ratios, 1990-2007. Data plotted as curves. The leverage ratio begins in 1990 at about 6.2 percent, rises to about 7.7 percent by 1993, and then gradually rises further, to reach about 7.9 percent in 2006; in 2007, it drops a little to about 7.7 percent. The tier 1 ratio begins in 1990 at about 7.8 percent, rises to reach about 10.7 percent in 1993, declines to about 9.3 percent by 1998, rises, on net, to about 10 percent in 2002, then drops, on balance, to about 9.4 percent in 2007. The total (tier 1 plus tier 2) ratio begins in 1990 at about 9.8 percent, rises to reach about 13.2 percent in 1993, declines to about 12 percent by 2000, then ranges between 12.2 percent and 12.8 percent through 2007, finishing with a value of about 12.2 percent in 2007.
Note: The data are as of year-end. For the components of the ratios, see text notes 9 and 10.
.