1A Tangible Common Equity Ratio is used to try and estimate how much capital a bank can sustainably lose before shareholder equity starts to become affected. As such, the higher the TCER, the more robust banks’ balance sheets are deemed to be.
All investments involve risk, including the possible loss of principal.
Equities are subject to market, market sector, market liquidity, issuer, and investment style risks to varying degrees. The banking and financials industries are subject to extensive government regulation, can be subject to relatively rapid change due to increasingly blurred distinctions between service segments, and can be significantly affected by availability and cost of capital funds, changes in interest rates, the rate of corporate and consumer debt defaults, and price competition.
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a period of time, often annually or quarterly.
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