Tier 1: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson
(Update.)
imported>Doug Williamson
(Add second definition.)
Line 1: Line 1:
''Banking - capital adequacy''  
1. ''Banking - capital adequacy''  


(T1).
(T1).
Line 14: Line 14:


Tier 1 capital is classified as Common Equity Tier 1 (CET1) or Additional Tier 1 (AT1), CET1 having superior loss-absorbing quality.
Tier 1 capital is classified as Common Equity Tier 1 (CET1) or Additional Tier 1 (AT1), CET1 having superior loss-absorbing quality.
2.
Abbreviation for Tier 1 executive.




Line 33: Line 38:
* [[Principal write down]]
* [[Principal write down]]
* [[Subordinated debt]]
* [[Subordinated debt]]
* [[Tier 1 executive]]
* [[Tier 2]]
* [[Tier 2]]

Revision as of 17:06, 15 September 2019

1. Banking - capital adequacy

(T1).

Tier 1 is the highest quality capital.

Contrasted with Tier 2, which is of lower quality.


Tier 1 is sometimes known as 'going concern' loss absorbing capital.


Tier 1 principally comprises equity, subject to regulatory deductions and the inclusion of some preferred shares and some perpetual bonds.

Tier 1 capital is classified as Common Equity Tier 1 (CET1) or Additional Tier 1 (AT1), CET1 having superior loss-absorbing quality.


2.

Abbreviation for Tier 1 executive.


See also