View source for Tier 2

''Banking - capital adequacy''

(T2).

Tier 2 capital includes eligible long dated subordinated debt and certain hybrid instruments.

Tier 2 is of lower loss-absorbing quality than Tier 1 capital, and its eligible amount for capital adequacy calculation purposes is restricted accordingly. 


Tier 2 is sometimes known as 'gone concern' loss absorbing capital.

It is generally loss-absorbing only when a bank has reached the point of non-viability (PONV).


== See also ==
* [[Additional Tier 1]]  (AT1)
* [[Basel II]]
* [[Basel III]]
* [[Capital]]
* [[Capital adequacy]]
* [[Capital Requirements Directive]]
* [[Common Equity Tier 1]]  (CET1)
* [[CRD IV]]
* [[Equity]]
* [[Going concern]]
* [[Gone concern]]
* [[Hybrid]]
* [[Subordinated debt]]
* [[Tier 1]]

[[Category:Accounting,_tax_and_regulation]]