Tier 2: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Update.) |
imported>Doug Williamson (Mend link.) |
||
| (3 intermediate revisions by the same user not shown) | |||
| Line 14: | Line 14: | ||
== See also == | == See also == | ||
* [[ | * [[Additional Tier 1]] (AT1) | ||
* [[Basel II]] | * [[Basel II]] | ||
* [[Basel III]] | * [[Basel III]] | ||
* [[Capital]] | * [[Capital]] | ||
* [[Capital adequacy]] | * [[Capital adequacy]] | ||
* [[Capital | * [[Capital Requirements Directive]] | ||
* [[ | * [[Common Equity Tier 1]] (CET1) | ||
* [[CRD IV]] | * [[CRD IV]] | ||
* [[Equity]] | * [[Equity]] | ||
| Line 28: | Line 28: | ||
* [[Subordinated debt]] | * [[Subordinated debt]] | ||
* [[Tier 1]] | * [[Tier 1]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
Latest 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).
