A measure of a bank's capital. It is expressed as a percentage of a bank's risk weighted credit exposures.
Also known as "Capital to Risk Weighted Assets Ratio (CRAR)."
What Does Tier 1 Capital Mean?
A term used to describe the capital adequacy of a bank. Tier I capital is core capital, this includes equity capital and disclosed reserves.
What Does Tier 2 Capital Mean?
A term used to describe the capital adequacy of a bank. Tier II capital is secondary bankcapital that includes items such as undisclosed reserves, general loss reserves, subordinated term debt, and more.
A term used to describe the capital adequacy of a bank. Tier II capital is secondary bankcapital that includes items such as undisclosed reserves, general loss reserves, subordinated term debt, and more.
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