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Total Capital

 
Banking Dictionary: Total Capital

Bank supervisor's measure of a bank's qualifying capital in computing its risk-based capital reserves. Total capital is measured as follows: Tier 1 equity capital (common stock and qualifying preferred stock), plus Tier 2 capital (reserves for loan losses, subordinated debt, and preferred stock not counted as Tier 1 capital).

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Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more