JPMorgan Chase Bank was the bank with the highest Tier 1 capital in the United States as of June 2023. Tier 1 capital measures the financial strength of a bank; it shows its core capital, including equity capital and disclosed reserves. JPMorgan Chase’s Tier 1 capital exceeded 279 billion U.S. dollars in the second quarter of 2023. The American banking giant also had the highest Tier 1 capital ratio in the United States.
What is Tier 1 capital ratio?
The Tier 1 capital ratio is an important indicator of a bank’s ability to handle financial distress. The ratio is the bank’s core capital to the total risk-weighted assets, and the ratio must be at least six percent. In 2022, all the largest banks in the United States had a Tier 1 capital ratio well above this level: JPMorgan Chase had a ratio of 14.9 percent, Citibank's ratio stood at 14.8 percent, and Bank of America had a ratio of 13 percent.
The leading banks in the U.S.
There are four major banks in the United States, often referred to as "the big four": JPMorgan, Bank of America, Wells Fargo, and Citigroup. Among these, JPMorgan is the largest. The bank tops the rankings in terms of market capitalization, total assets, investment banking revenue, and net income.
FAQs
What Is Tier 1 Capital? Tier 1 capital refers to the core capital held in a bank's reserves and is used to fund business activities for the bank's clients. It includes common stock, as well as disclosed reserves and certain other assets.
What are the top Tier 1 capital banks? ›
| # | Institution | Ratio |
|---|
| 1 | First United Bank and Trust Company | 10.87 |
| 2 | Sandy Spring Bank | 13.01 |
| 3 | Bangor Savings Bank | 10.96 |
| 4 | Stockman Bank of Montana | 12.47 |
51 more rowsWhat Is Tier 1 Capital? Tier 1 capital refers to the core capital held in a bank's reserves and is used to fund business activities for the bank's clients. It includes common stock, as well as disclosed reserves and certain other assets.
What banks are in Category 1? ›
2 See 12 C.F.R. Part 252 (Regulation YY). 3 Category I would include JPMorgan Chase & Co., Bank of America Corporation, Citigroup, Inc., Wells Fargo & Company, The Goldman Sachs Group, Inc., Morgan Stanley, The Bank of New York Mellon Corporation, and State Street Corporation.
What is the tier 1 capital ratio for JPMorgan Chase? ›
CET1 ratio of JPMorgan Chase 2010-2022
In 2022, JPMorgan Chase had a common equity tier 1 (CET1) capital ratio of 13.2 percent, which was above the required level of 4.5 percent.
What is a Tier 1 bank in the USA? ›
Bank tiers indicate an institution's financial health. For example, a Tier 1 bank can immediately absorb losses without halting banking operations. A Tier 2 bank or institution with supplementary capital has less secure and harder to liquidate assets, which is less stable during a crisis.
How many Tier 1 banks are there in the US? ›
There are four major banks in the United States, often referred to as "the big four": JPMorgan, Bank of America, Wells Fargo, and Citigroup. Among these, JPMorgan is the largest. The bank tops the rankings in terms of market capitalization, total assets, investment banking revenue, and net income.
What is the strongest US bank? ›
JPMorgan Chase, or Chase Bank, is the biggest bank in America with nearly $3.4 trillion in assets. It boasts a vast network of over 4,800 physical branches and more than 15,000 ATMs. With generous bonuses and promotions and a variety of products, Chase is a popular choice for consumers across the country.
What is Tier 1, tier 2, and tier 3 capital in banks? ›
Tier 1 capital is intended to measure a bank's financial health; a bank uses tier 1 capital to absorb losses without ceasing business operations. Tier 2 capital is supplementary capital, i.e., less reliable than tier 1 capital. A bank's total capital is calculated as a sum of its tier 1 and tier 2 capital.
What is Tier 1 and Tier 2 capital of banks? ›
Tier 1 capital can immediately absorb losses without affecting banking operations. Tier 2 or supplementary capital encompasses a range of other assets which are less secure and harder to liquidate, making them less useful in case of crisis.
The Basel III common equity Tier 1 capital ratio was an estimated 9.9% at December 31, 2023 and 9.8% at September 30, 2023. PNC's average LCR for the three months ended December 31, 2023 was 107%, exceeding the regulatory minimum requirement throughout the quarter.
Is HSBC a Tier 1 bank? ›
The British banking giant reported a Tier 1 capital of roughly 113.3 billion British pounds. HSBC was followed by Barclays and Lloyds Banking Group. Tier 1 capital displays the financial strength of a bank as it shows the bank's core capital, including equity capital and disclosed reserves.
Is Deutsche bank a Tier 1 bank? ›
Deutsche Bank's tier 1 capital ratio increased to 16.1 percent in 2023 from 15.7 percent the year before. 2023 was the fifth consecutive year with increasing tier 1 capital ratio at the German bank. The ratio reported in 2022 was even higher than at JPMorgan Chase, one of the largest U.S. banks. What is tier 1 capital?
Is Chase Bank Tier 1? ›
Notes: Top-Tier: JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo; Mid-tier: Bank of New York Mellon, State Street, US Bancorp, and PNC Financial Services Group; Low-tier: Capital One Financial, BB&T, SunTrust Banks, and Regions Financial.
Is UBS a Tier 1 bank? ›
The only tier one investment bank might be JPMorgan Chase because it ranks first or second globally across most product areas. Tier two would be Goldman Sachs, Barclays Capital, Credit Suisse, Deutsche Bank, and Citigroup. Examples of tier three would be UBS, BNP Paribas, and SocGen.
What tier is JP Morgan? ›
JPM (JPMorgan Chase) Capital Adequacy Tier - Tier 1 Ratio %
What is Tier 1 and tier 2 capital of banks? ›
Tier 1 capital can immediately absorb losses without affecting banking operations. Tier 2 or supplementary capital encompasses a range of other assets which are less secure and harder to liquidate, making them less useful in case of crisis.
Is Chase bank Tier 1? ›
Notes: Top-Tier: JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo; Mid-tier: Bank of New York Mellon, State Street, US Bancorp, and PNC Financial Services Group; Low-tier: Capital One Financial, BB&T, SunTrust Banks, and Regions Financial.
What is tier 2 capital for banks? ›
Tier 2 is designated as the second or supplementary layer of a bank's capital and is composed of items such as revaluation reserves, hybrid instruments, and subordinated term debt. It is considered less secure than Tier 1 capital—the other form of a bank's capital—because it's more difficult to liquidate.
