Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
Tier 1 capital — is the core measure of a bank s financial strength from a regulator s point of view. It is composed of core capital,[1] which consists primarily of common stock and disclosed reserves (or retained earnings),[2] but may also include non redeemable … Wikipedia
Tier 2 capital — See Tier 1 capital. Tier 2 is a bank s supplementary capital and includes revaluation reserves, general provisions and some classes of subordinated debt. It is divided into lower and upper tiers: • Lower Tier 2 capital is relatively standard in… … Law dictionary
Tier 2 capital — Tier 2 capital, or supplementary capital, include a number of important and legitimate constituents of a bank s capital base [1]. These forms of banking capital were largely standardized in the Basel I accord, issued by the Basel Committee on… … Wikipedia
Tier 1 capital — Regulatory capital requirements are designed to ensure that a bank maintains sufficient capital to absorb any losses it incurs while remaining able to pay creditors and depositors. The basic concept is that if a bank has enough of the right type… … Law dictionary
tier 1 capital — A regulatory definition of bank capital. Tier 1 capital consists of common shareholders equity, perpetual preferred shareholders equity with noncumulative dividends, retained earnings, and minority interests in the equity accounts of consolidated … Financial and business terms
tier 2 capital — A regulatory definition of bank capital. Tier 2 capital consists of subordinated debt, intermediate term preferred stock, cumulative and long term preferred stock, and a portion of the bank s allowance for loan and lease losses. American Banker… … Financial and business terms
Tier 3 Capital — Tertiary capital held by banks to meet part of their market risks, that includes a greater variety of debt than tier 1 and tier 2 capitals. Tier 3 capital debts may include a greater number of subordinated issues, undisclosed reserves and general … Investment dictionary
Tier 2 Capital — A term used to describe the capital adequacy of a bank. Tier II capital is secondary bank capital that includes items such as undisclosed reserves, general loss reserves, subordinated term debt, and more. This is related to Tier 1 Capital … Investment dictionary
Tier 1 Capital — A term used to describe the capital adequacy of a bank. Tier I capital is core capital, this includes equity capital and disclosed reserves. Equity capital includes instruments that can t be redeemed at the option of the holder … Investment dictionary
Tier 1 Capital Ratio — A comparison between a banking firm s core equity capital and total risk weighted assets. A firm s core equity capital is known as its Tier 1 capital and is the measure of a bank s financial strength based on the sum of its equity capital and… … Investment dictionary
