THE INSTITUTION'S SCORE
Capital works as a buffer against losses and affords protection for depositors during times of financial trouble for the bank. Therefore, when it comes to measuring an an institution's financial resilience, capital is valuable. When looking at safety and soundness, the more capital, the better.
On our test to measure capital adequacy, Citizens Bank, National Association received a score of 10 out of a possible 30 points, below the national average of 13.13.
One way to measure this buffer is looking at a bank's Tier 1 capital ratio. Citizens Bank, National Association's Tier 1 capital ratio was 11.37 percent, higher than the 6 percent level regulators consider adequate, but lower than the national average of 25.65 percent. A higher capital ratio suggests the bank will be better able to stand up to economic headwinds.
Overall, Citizens Bank, National Association held equity amounting to 12.90 percent of its assets, which exceeded the national average of 12.03 percent.