The Basel Accord changed both the numerator and denominator of the capital adequacy ratio. The Basel Tier 1 capital ratio numerator still includes common equity, perpetual preferred stock and minority interests, but deducts goodwill and other intangibles and no longer adds back the loan loss allowance. The denominator is risk-weighted assets10 calculated after assigning assets to one of four categories with weights of 0%, 20%, 50% or 100%, depending on the risk associated with the assets