The formula you would use is the equity capital ratio which is equity capital/total assets x 100 = Equity Capital Ratio. You can find this on page 86 in our eBook.

Tenth National Bank has common stock of $2 million, retained

earnings of $5 million, loan loss reserves of $3 million, and subordinated

notes outstanding in the amount of $4 million. Total bank

assets are $105 million. Calculate the equity capital ratio.