How to Use the Basel Index Calculator
Choose the currency, then enter total capital and risk-weighted assets. Both amounts should use the same currency and reporting basis.
The result is capital as a percentage of risk-weighted assets. The calculator also displays both inputs with the selected currency symbol for easier checking.
Formula and Method - Basel Index Calculator
Basel index = (capital ÷ risk-weighted assets) × 100%
Risk-weighted assets convert assets into a risk-adjusted denominator. Dividing capital by that denominator gives a rough view of the bank’s loss-absorbing buffer. The 8% and 10.5% cues are reference points, not a full regulatory test.
Use Cases for the Basel Index Calculator
- Calculating a capital-ratio style metric from disclosure data.
- Testing how capital changes or RWA changes affect the ratio.
- Teaching the relationship between capital and risk-weighted assets.