Discover Financial Services (LTS:0IBC) Capital Adequacy Tier - Tier 1 Ratio % : 0.00% (As of . 20)

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What is Discover Financial Services Capital Adequacy Tier - Tier 1 Ratio %?

Capital Adequacy Tier - Tier 1 Ratio % is the ratio of a bank’s core tier 1 capital, which includes its equity capital and disclosed reserves, to its total risk-weighted assets. It is a key measure of a bank's financial strength and should not fall lower than 6% as per Basel III rules.

The historical rank and industry rank for Discover Financial Services's Capital Adequacy Tier - Tier 1 Ratio % or its related term are showing as below:

LTS:0IBC's Capital Adequacy Tier - Tier 1 Ratio % is not ranked ^*
in the Credit Services industry.
Industry Median:
* Ranked among companies with meaningful Capital Adequacy Tier - Tier 1 Ratio % only.

Discover Financial Services Capital Adequacy Tier - Tier 1 Ratio % Historical Data

The historical data trend for Discover Financial Services's Capital Adequacy Tier - Tier 1 Ratio % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Discover Financial Services Capital Adequacy Tier - Tier 1 Ratio % Chart

Discover Financial Services (LTS:0IBC) Capital Adequacy Tier - Tier 1 Ratio % Calculation

Capital Adequacy Tier - Tier 1 Ratio % is calculated as

Capital Adequacy Tier - Tier 1 Ratio %

Tier 1 Capital

Total Risk Weighted Assets

Discover Financial Services (LTS:0IBC) Capital Adequacy Tier - Tier 1 Ratio % Explanation

Tier 1 capital, or core capital, consists of a bank's common stock, retained earnings, accumulated other comprehensive income, noncumulative perpetual preferred stock and any regulatory adjustments to those accounts. The tier 1 capital ratio is the ratio of a bank’s core capital vs. its total risk-weighted assets (RWAs). The risk-weighted assets are calculated by multiplying the assets that the company holds by their corresponding weights for credit risk (the weight is usually developed by the central bank).

The tier 1 capital ratio is the basis for the Basel III international capital and liquidity standards. The standard is used to force banks to increase capital buffers and ensure they can withstand financial distress before they become insolvent. Basel III rules stipulate that the Tier 1 capital ratio has to be at least 6% and the equity component of Tier 1 capital has to have at least 4.5% of RWAs. A higher Tier 1 ratio suggests that the company has more capital to pay down deposits and is less likely to become insolvent.

Discover Financial Services Capital Adequacy Tier - Tier 1 Ratio % Related Terms

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Discover Financial Services (LTS:0IBC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Discover Financial Services (LTS:0IBC) » Definitions » Capital Adequacy Tier - Tier 1 Ratio %

Comparable Companies

Traded in Other Exchanges

DFS:USA DC7:Germany

Address

2500 Lake Cook Road, Riverwoods, IL, USA, 60015

Website

https://www.discover.com

Discover Financial Services is a bank operating in two distinct segments: direct banking and payment services. The company issues credit and debit cards and provides other consumer banking products including deposit accounts, students loans, and other personal loans. It also operates the Discover, Pulse, and Diners Club networks. The Discover network is the fourth-largest payment network in the United States as ranked by overall purchase volume, and Pulse is one of the largest ATM networks in the country.

Discover Financial Services (LTS:0IBC) Headlines

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