CET1 ratio of the largest banks in the U.S. 2024

In the second quarter of 2024, TD Bank's U.S. operations, a subsidiary of the Canadian Toronto-Dominion Bank, maintained the highest common equity tier 1 (CET1) capital ratio among major U.S. banks, as ranked by total assets. With a CET1 ratio of 16.77 percent, TD Bank far exceeded the regulatory minimum of 4.5 percent. This strong performance came from an institution that ranked as the 15th largest bank globally by market capitalization in 2023. For comparison, JPMorgan Chase, the largest U.S. bank, reported a CET1 ratio of 15.33 percent during the same period.

What is CET1 capital ratio?

The Basel III framework, established by the Basel Committee on Banking Supervision, sets international standards for bank capital requirements to ensure global banking sector stability. These measures, developed in response to the 2007-2009 financial crisis, mandate that banks maintain sufficient capital to cover unexpected losses and remain solvent during crises. Under Basel III, the total capital requirement is set at a minimum of eight percent of risk-weighted assets, with Common Equity Tier 1 (CET1), the highest quality capital, required to comprise at least 4.5 percent of risk-weighted assets. In 2024, JPMorgan Chase had the highest level of Tier 1 capital among all banks in the United States in 2024. 

Worldwide Tier 1 capital levels of banks

While JPMorgan Chase maintained the highest Tier 1 capital level among U.S. banks, it ranked fifth globally in this metric. Four Chinese banks surpassed it: Industrial and Commercial Bank of China (ICBC), China Construction Bank, Agricultural Bank of China, and Bank of China. Among these, ICBC stood out as the world leader in Tier 1 capital in 2023.