Tier I capital, Tier II capital -- Banks
Definition of '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.
Investopedia explains 'Tier 1 Capital'Equity capital includes instruments that can't be redeemed at the option of the holder.
Read more: http://www.investopedia.com/terms/t/tier1capital.asp#ixzz24lQu1l4i
Definition of '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.
Investopedia explains 'Tier 2 Capital'This is related to Tier 1 Capital.
Read more: http://www.investopedia.com/terms/t/tier2capital.asp#ixzz24ePr7AjG
Tier I capital, Tier II capital -- Banks Reviewed by sambasivan srinivasan on 5:02:00 PM Rating: