# Equity-to-Assets Ratio

Total equity as a percentage of total assets. Bank capital adequacy.

## Definition

Equity-to-assets measures how much of a bank's balance sheet is funded by shareholder equity versus borrowed money (mostly deposits). The simple cousin of regulatory capital ratios.

## Formula

(Total Equity ÷ Total Assets) × 100

## Why it matters

Banks are intentionally levered businesses (10–20x assets-to-equity is normal), but equity-to-assets is the buffer that absorbs loan losses before depositors are at risk. Watch for trend: rising = building capital, falling = paying out or growing risk.

## How Standard Equity uses it

Shown in the main table for banks and broker-dealers, in place of debt-to-equity. Their SE Grade quality pillar scores it too, and a very thin capital base caps the pillar at 1 star. The estimate columns hold the latest quarter's ratio, so they carry a ○: they are not a forecast.

## The metric

| Category   | Banks      |
| ---------- | ---------- |
| Unit       | %          |
| Applies to | Banks only |

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