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Tier 1 Capital
The highest-quality going-concern regulatory bank capital is its Common Equity Tier 1 (CET1) capital. This consists of common shares and stock surplus, retained earnings, other comprehensive income, qualifying minority interest and any regulatory adjustments. Banks can also include eligible Additional Tier 1 capital instruments, although these are not considered as high quality as CET1 capital. The sum of CET1 and AT1 capital is referred to as a bank’s Tier 1 capital.