JPMorgan Chase Bank was the bank with the highest Tier 1 capital in the United States as of June 2023. Tier 1 capital measures the financial strength of a bank; it shows its core capital, including equity capital and disclosed reserves. JPMorgan Chase’s Tier 1 capital exceeded 279 billion U.S. dollars in the second quarter of 2023. The American banking giant also had the highest Tier 1 capital ratio in the United States.
What is Tier 1 capital ratio?
The Tier 1 capital ratio is an important indicator of a bank’s ability to handle financial distress. The ratio is the bank’s core capital to the total risk-weighted assets, and the ratio must be at least six percent. In 2022, all the largest banks in the United States had a Tier 1 capital ratio well above this level: JPMorgan Chase had a ratio of 14.9 percent, Citibank's ratio stood at 14.8 percent, and Bank of America had a ratio of 13 percent.
The leading banks in the U.S.
There are four major banks in the United States, often referred to as "the big four": JPMorgan, Bank of America, Wells Fargo, and Citigroup. Among these, JPMorgan is the largest. The bank tops the rankings in terms of market capitalization, total assets, investment banking revenue, and net income.
