The total capital ratio in Q2 2025 rose to 23.04% compared to a ratio of 22.94% in the previous quarter. It is thus above the average 18.6% ratio of the pre-pandemic period 2015-2019. In the case of the highest quality capital, CET1, the capital to risk-weighted assets ratio of the banking sector is 20.66%, compared to 20.6% in the previous quarter, and is thus above the 17.7% ratio of the pre-pandemic period 2015-2019.
Source of primary data
CNB ARAD
Note
Total capital = Tier 1 (CET1 + AT1) + Tier 2. Tier 1 capital is able to cover losses more easily, which mainly includes CET1 capital (composed of equity, retained earnings and reserves) and AT1 debt capital (which can cover losses more easily than TIER2 capital). The data also include data for banks and branches of foreign banks providing services in the Czech Republic and data for branches of banks operating abroad.