Main Page and Tier 2: Difference between pages
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''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]] | |||
Revision as of 17:54, 25 June 2022
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).