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Tier 2

 

Secondary source of bank Capital financing banking activities. Tier 2 capital includes subordinated debt, convertible securities, and a portion of the Loan Loss Reserves for possible bad loans. See also Risk-Based Capital.

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Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more
Wikipedia. This article is licensed under the Creative Commons Attribution/Share-Alike License. It uses material from the Wikipedia article "Tier 2" Read more