capital ratios, than they were prior to the crisis. However, the increase in simple equity ratios for the same banks has been … notion that equity ratios only include high-quality capital and do not rely on internal risk models to compute risk …

ratio; the Tier I and Tier II ratios; and the tangible equity ratio. We find several results: (i) before the crisis … quality forms of capital, such as Tier 1 capital and tangible common equity, were more relevant …