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Tier 2 capital
Tier 2 capital is a measure of a bank's financial strength with regard to the second most reliable forms of capital, from a regulator's point of view. It consists of accumulated after-tax surplus of retained earnings, revaluation reserves of fixed assets and long-term holdings of equity securities, general loan-loss reserves , hybrid (debt/equity) capital instruments, and subordinated debt .
Tier 1 capital is the most reliable form of capital.
See also
Last updated: 10-14-2005 21:16:44
03-10-2013 05:06:04
The contents of this article is licensed from www.wikipedia.org under the GNU Free Documentation License. Click here to see the transparent copy and copyright details
The contents of this article is licensed from www.wikipedia.org under the GNU Free Documentation License. Click here to see the transparent copy and copyright details