What are bank Capital Reserves?
Bank capital serves as an important cushion against unexpected losses. It creates a strong incentive to manage a bank in a prudent manner, because the bank owners’ equity is at risk in the event of a failure. Thus, bank capital plays a critical role in the safety and soundness of individual banks and the banking system. Bank of Utah’s Capital has increased each year for the past 10 years and is at an all time high. Over the past ten years Bank of Utah’s Tier 1 Capital has increased every year. We finished 2009 with 9.35% at over $75 Million, higher than our peer group.
