Which constraint is actually binding calculator

Which constraint is actually binding, worked through in your browser.

Interactive: which constraint is actually bindingMedium

The same capital against two denominators. One is risk-weighted and can be argued with; the other counts every asset as itself. Whichever produces less headroom is the one the bank is actually running against.

Common equity tier 1 (m) Risk-weighted assets (m) Total leverage exposure (m) CET1 requirement incl. buffers % Leverage ratio minimum %

CET1 ratio: —
Leverage ratio: —
Headroom on the risk-weighted test: —
Headroom on the leverage test: —
Average risk weight: —
Which binds: —

A simplified illustration of two ratios and the distance to each. Real requirements are bank-specific, set by a supervisor, and include layers this does not model; falling into a buffer also triggers restrictions on distributions rather than a breach. Information and education only.

The idea behind it

This calculator belongs to Bank Capital, where the mechanism it computes is explained step by step, with the formula, what each input means and where the simple model stops being right. Everything is computed in your browser; nothing you type is sent anywhere.

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The same in full — six points, and why each one matters

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