Capital/Asset Ratios of Banks in Selected Industrial Countries, 1979–871
|Germany, Fed. Rep. of5||3.3||3.3||3.3||3.3||3.3||3.4||3.5||3.6||3.7|
|Largest five banks||7.6||7.6||7.4||7.3||7.1||7.1||7.8||7.8||7.9|
|Largest four banks10||7.2||6.9||6.5||6.4||6.7||6.3||7.9||8.4||8.2|
|Nine money-center banks12||4.5||4.5||4.6||4.9||5.4||6.2||6.8||7.3||8.2|
|Next 15 banks12||5.4||5.5||5.2||5.3||5.7||6.6||7.2||7.5||8.4|
|All country-reporting banks12, 13||5.3||5.4||5.4||5.6||5.9||6.5||6.9||7.2||7.1|
Aggregate figures such as the ones in this table must be interpreted with caution, owing to differences across national groups of banks and over time in the accounting of bank assets and capital. In particular, provisioning practices vary considerably across these countries as do the definitions of capital. Therefore, cross-country comparisons may be less appropriate than developments over time within a single country.
Ratio of equity plus accumulated appropriations for contingencies (before 1981, accumulated appropriations for losses) to total assets (Bank of Canada Review).
The changeover to consolidated reporting from November 1, 1981, had the statistical effect of increasing the aggregate capital/asset ratio by about 7 percent.
Ratio of capital, reserves, and general provisions to total assets. Data exclude cooperative and mutual banks. This ratio is not the official one (ratio of risk coverage), which includes loan capital and subordinate loans in the numerator, while in the denominator, assets are assigned different weights depending on the quality of the assets. The official ratio provides the groundwork for the control of the banking activities by the Commission Bancaire (Commission de Contrôle des Banques, Rapport).
Ratio of capital including published reserves to total assets. From December 1985, the Bundesbank data incorporate credit cooperatives (Deutsche Bundesbank, Monthly Report).
Ratio of reserves for possible loan losses, specified reserves, share capital, legal reserves plus surplus and profits and losses for the term to total assets (Bank of Japan, Economic Statistics Monthly).
Ratio of capital resources (share capital, reserves excluding current-year profits, general provisions, and eligible subordinated loans) to total payables. Eligible subordinated loans are subject to prior authorization by the Institut Monétaire Luxembourgeois and may not exceed 50 percent of a bank’s share capital and reserves. Data in the table are compiled on a nonconsolidated basis and as a weighted average of all banks (excluding foreign bank branches). An arithmetic mean for 1987 would show a ratio of 12.6 percent. Inclusion of current-year profits in banks’ capital resources would result in a weighted average of 4.3 percent for 1987. Provisions for country risks, which are excluded from capital resources, have been moderately increased in the last year. The 1987 level of provision represents five times the level of 1982.
Ratio of capital, disclosed free reserves, and subordinated loans to total assets. Eligible liabilities of business members of the agricultural credit institutions are not included (De Nederlandsche Bank, N.V., Annual Report).
Ratio of capital plus published reserves, a part of hidden reserves, and certain subordinated loans to total assets (Swiss National Bank, Monthly Report).
Ratio of share capital and reserves, plus minority interests and loan capital, to total assets (Bank of England).
Ratio of capital and other funds (sterling and other currency liabilities) to total assets (Bank of England). Note that these figures include U.K. branches of foreign banks, which normally have little capital in the United Kingdom.
Ratio of total capital (including equity, subordinated debentures, and reserves for loan losses) to total assets.
Reporting banks are all banks that report their country exposure for publication in the Country Exposure Lending Survey of the Federal Financial Institutions Examination Council.