Quarterly CET1 ratio of the U.S. banking industry 2003-2024
The CET1 ratio of the U.S. commercial banking industry grew slightly in the first quarter of 2024, marking the seventh consecutive quarter of increasing CET1 ratio. During the observed period, the sharpest decrease took place in 2007, which was caused by the global financial crisis. Another decrease took place in 2019, due to the COVID-19 pandemic, and then another one in 2021 and 2022. Common equity tier 1 (CET1) is a capital measure that compares a bank's capital against its assets to determine whether the bank could stand a crisis. It was introduced as a part of Basel III, a set of international standards, following the 2007-2008 financial crisis.