France CET1 capital to risk-weighted assets
France CET1 capital to risk-weighted assets stood at 15.91% in Q1 2026, according to IMF – Financial Soundness Indicators (FSIC), data reported by Banque de France. It is one of the indicators in the Financial soundness indicators table (Value · Quarterly), with a complete series running from Q4 2014 to Q1 2026. The complete series with an interactive chart, free to download.
This indicator in the Financial soundness indicators table
| Indicator | Q1-2026 | Q4-2025 | Q3-2025 | Q2-2025 | Q1-2025 | Q4-2024 | Q3-2024 | Q2-2024 | Q1-2024 | Q4-2023 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Capital adequacy of deposit takers | |||||||||||
| Common equity Tier 1 capital to risk-weighted assets | 15.91 | 16.06 | 16.02 | 16.06 | 15.98 | 16.13 | 15.78 | 15.94 | 15.94 | 16.08 | |
| Tier 1 capital to total assets (leverage) | 5.45 | 5.54 | 5.43 | 5.5 | 5.46 | 5.56 | 5.35 | 5.41 | 5.38 | 5.47 |
Understanding france CET1 capital to risk-weighted assets
This series tracks the highest quality component of a bank's capital structure, setting common equity and retained earnings against total risk-weighted assets. Common equity Tier 1 represents pure loss-absorbing capital, omitting preferred shares, hybrid securities, and subordinated debt instruments. By isolating ordinary shares and disclosed reserves, this measure provides the strictest assessment of an institution's solvency buffer before considering supplementary capital tiers.
Analysts tracking this indicator should monitor potential impacts from evolving accounting standards affecting retained earnings and valuation reserves. Initial estimates can face revisions when audit completions mandate adjustments to asset write-downs or deferred tax assets. Year-on-year analysis offers a clearer perspective on organic capital generation through retained earnings compared to volatile quarter-on-quarter movements influenced by dividend payout schedules.
Frequently asked questions
- What makes this ratio stricter than traditional Tier 1 capital?
- It excludes preferred shares and hybrid securities, restricting the numerator exclusively to common equity and retained earnings.
- How do retained earnings influence this measure over time?
- Profits retained within the bank directly increase the common equity numerator, strengthening the ratio assuming risk-weighted assets remain stable.
- Why might early quarterly estimates be revised?
- Subsequent supervisory reviews and finalized financial statement audits frequently necessitate adjustments to capital deductions and asset valuations.