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* **Tier 1 Capital Ratio:** This ratio focuses on the quality of a bank's capital. Tier 1 capital includes the most liquid and reliable forms of capital, such as common stock and retained earnings. The Tier 1 capital ratio is calculated as Tier 1 Capital divided by Risk-Weighted Assets (RWAs). It is used to measure the adequacy of a bank's capital to absorb losses. A higher ratio indicates a stronger financial position.
