tier 1 capital definition

tier 1 capital

First part of the two-tier risk based capital standard commonly used by regulatory agencies (such as a central bank) to assess a financial institution's capital adequacy. Also called core capital or primary capital, it includes common stock and retained earnings and is the basis on which a bank, building society, credit union supports its deposit and lending operations.

tier 1 capital is in the Accounting & Auditing and Banking, Commerce & Finance subjects.

tier 1 capital appears in the definition of the following term: core capital

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