Tier 1 capital ratio of the banking industry in Belgium 2017-2023
The Tier 1 capital ratio of the banking industry in Belgium increased overall during the period from 2017 to 2023. The ratio measures a bank's core equity capital divided by its total risk-weighted assets (RWA). Developed in its current form in the third Basel Accord, known as Basel III, financial institutions must maintain a ratio above a certain minimum to ensure that they are protected against unexpected losses, such as those that occurred during the financial crisis. As of June 2023, the Tier 1 capital ratio of the banking industry in Belgium stood at 19.9 percent.
