Eghtesad Novin Bank's tier one capital ratio reached 8.19% at the end of June, nearly double the Basel Committee's minimum requirement of 4.5%, indicating the bank's capital is not only sufficient in quantity but also high in quality.

The bank's capital adequacy ratio reached 9.5%, exceeding the minimum regulatory requirement of 8% under Basel standards and demonstrating appropriate risk coverage and financial health, Shoma News reported on July 28.

Capital adequacy consists of two components: tier one capital comprising core and reliable resources such as paid-up capital and retained earnings, and tier two capital including supplementary resources such as long-term debt and reserves.

Eghtesad Novin Bank's capital composition, with a high proportion of tier one capital, signals the bank's financial strength and capital discipline.

The Basel Committee on Banking Supervision sets international regulatory standards for banks to ensure adequate capital buffers against potential losses and maintain financial stability.

Tier one capital represents the highest quality capital that can absorb losses whilst the bank continues operating, making it a crucial indicator of banking sector resilience.

The strong capital ratios position Eghtesad Novin Bank well above minimum regulatory thresholds, providing additional buffer against economic uncertainties and potential credit losses in Iran's banking sector.

Iranian banks have been working to strengthen their capital positions in recent years as part of broader financial sector reforms and compliance with international banking standards.