tier 1 capital

  

Definition

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. Tier 1 capital includes common stock and retained earnings and is the basis on which a bank, building society, credit union supports its deposit and lending operations. Also called core capital or primary capital.

Use tier 1 capital in a sentence

  • The tier 1 capital was really interesting to me and I had to know more, so I asked my friend about it.

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  • When you are dealing with a tier 1 capital you have to decide if you really think it is the right way to proceed.

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  • Although the bank had taken some significant losses in the recent economic slump, it's TIER 1 CAPITAL resources, as disclosed to their new partnering institution, were untouched, making the merger an entirely profitable one.

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