1
                                                                      EXHIBIT 12

                             CAPITOL BANCORP LTD.
              COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                            (DOLLARS IN THOUSANDS)





                                                     As of and for the                                                             
                                                     Nine Months ended                                                             
                                                     September 30             As of and for the years ended December 31 
                                               --------------------------   --------------------------------------------------------
                                                      1997      1996        1996     1995         1994      1993       1992
                                                                                                
Earnings:
 Income before income taxes                          $ 6,163    $ 5,144   $ 6,881    $ 4,808     $ 3,236    $1,487    $2,335
 Interest expense                                     17,633     12,996    17,800     15,079       9,397     8,072     7,356
                                                     -------    -------   -------    -------     -------    ------    ------
  Earnings for purposes of ratio                     $23,796    $18,140   $24,680    $19,887     $12,632    $9,558    $9,692
                                                     =======    =======   =======    =======     =======    ======    ======
Fixed Charges:
  Interest expense:
   Interest on deposits                              $17,165    $12,525   $17,292    $14,561     $ 8,784    $7,553    $7,269
   Debt obligations and other                            468        471       508        518         613       518        87
                                                     -------    -------   -------    -------     -------    ------    ------
   Total interest expense                             17,633     12,996    17,800     15,079       9,397     8,072     7,356
  Amortization of debt issuance costs                      0          0         0          0           0         0         0
  Interest component of rent expense                       0          0         0          0           0         0         0
                                                     -------    -------   -------    -------     -------    ------    ------
  Total fixed charges for purposes of ratio          $17,633    $12,996   $17,800    $15,079     $ 9,397    $8,072    $7,356
                                                     =======    =======   =======    =======     =======    ======    ======
Fixed charges excluding interest on deposits            $468       $471      $508       $518        $613      $518       $87
                                                     =======    =======   =======    =======     =======    ======    ======


Ratio of earnings to fixed charges:

 Including interest on deposits                         1.35       1.40      1.39       1.32        1.34      1.18      1.32
                                                     =======    =======   =======    =======     =======    ======    ======
 Excluding interest on deposits                        13.17      10.92     13.54       9.29        5.28      2.87     26.81
                                                     =======    =======   =======    =======     =======    ======    ======