Our liquidity risk management structure has been an important factor in maintaining adequate liquidity and in managing our funding profile during the fiscal year of 2011. Liquidity management protects our ability to meet all payment obligations when they are required. In using liquidity management we ensure that there is sufficient access to liquid capital for our operating subordinates. Our liquidity strategy involved ensuring that a certain level of capital was available to be liquidated, if any rapid changes in our environment occur. Our liquidity management was exemplified in our access to a wide variety of funding sources. Pinnacle Bank was funded mainly with Retail CDs in which we held $481,905.48 at the end of 2011 fiscal year, $235,024.63 maturing in Quarter T+1 and $246,880.85 maturing in Quarter T+2. The rate Pinnacle bank paid on the Retail CDs was 2.50% which was very low compare to Ben Berbankey Bank. Ben Berbanky Bank at the end of the fiscal year held $577,379 in Retail CDs but had to pay a rate of 3.30% on them. Pinnacle bank used its liquidity more sufficiently by paying the lowest rate in Retail CD. This widened the spread which resulted in in the short term making the spread in the long term better.
The principal ratios for reviewing the capital adequacy of Pinnacle Bank are the Tier-1 Ratio and the BIS ratio. These ratios, which were applied by the Bank for International Settlements are intended to encourage comparability between financial institutions. The requirements are based upon the Basel Capital II Accord. Pinnacle's capital adequacy is calculated on a monthly basis including a comparison between the actual and the expected ratios which is then reported to management. This allows forecasts to be prepared to ensure ratios future, compliance with capital adequacy requirements. The ratios show capital adequacy that moderate on and off balance sheet commitments such as credit risk, market risk, operational risk and other types of risk positions articulated as risk-weighted items so that it will reflect their comparative risk.
During the fiscal year of 2011, Pinnacle Bank successfully complied with the capital requirements imposed by the Basel Capital Standard, which required a minimum Tier-1 ratio of 4% and a minimum BIS ratio of 8%. The strong support from our shareholders enables the bank to maintain a comfortable capital cushion. At the year-end 2011 capital adequacy ratio (Tier 1 and Tier 2 Capital/ Risk Weighted Assets) stood at 9.99% which was higher than the capital requirement established.
The following table shows the summary of Capital Ratios and RWA for Pinnacle Bank.