Tangible Common Equity (TCE) is Total Equity Capital minus items that are either intangible or not controlled by common shareholders. To calculate the tangible common equity for banks: intangible assets, preferred equity, and minority interest are subtracted from the total amount of shareholders equity (Total Equity Capital). The resulting TCE value gives a conservative estimation of the potential amount received by shareholders in the case that a bank is faced with liquidation or bankruptcy.

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