In computing the capital adequacy of banks, Tier 1 refers to core capital, the sum of equity capital and disclosed reserves as adjusted, while Tier 2 refers to undisclosed reserves, revaluation reserves, general provisions and loan loss reserves, hybrid debt-equity instruments, and subordinated long-term debt.
Tier 1 and Tier 2
| Financial & Investment Dictionary: Tier 1 and Tier 2 |
| 5min Related Video: Tier 1 and Tier 2 |
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| Risk-Based Capital (in banking) |
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 | Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved. Read more |
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Mentioned in
- Amdocs Ltd
- iBasis Inc
- Risk-Based Capital (in banking)
- Capital Ratio (in banking)
