(Alliance News) - The common equity tier 1 capital ratio for the UK banking sector rose in the fourth quarter of 2022, the Bank of England reported on Friday.
The central bank said the CET1 capital ratio in the UK banking sector grew by 0.4 percentage point to 16.1% from 15.7% in the third quarter. It was still 0.7 percentage point below the value of 16.8% a year ago at the end of 2021.
The CET1 ratio compares a bank's capital against its risk assets, with a higher ratio being more financially sound.
The quarterly update comes amid concern about the financial stability of the global banking sector following bank failures in the US.
The level of CET1 capital fell by 3.7% quarterly to GBP472 billion from GBP490 billion, the Bank of England said. This still was 2.6% higher than GBP460 billion a year before.
However, total risk-weighted assets declined but 6.1% over the quarter to GBP2.94 billion from GBP3.13 billion. They were 7.1% higher than GBP2.74 billion a year prior.
By Tom Budszus, Alliance News reporter
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