tier 2 capital definition

tier 2 capital

Second part of the two-tier risk based standard commonly used by regulatory agencies (such as a central bank) to assess a financial institution's capital adequacy. Also called supplemental capital, it includes subordinated debt, convertible securities, and a percentage of loan-loss reserves.

tier 2 capital is in the Accounting & Auditing and Banking, Commerce & Finance subjects.

tier 2 capital appears in the definition of the following term: supplemental capital

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