Tier 2: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Update.) |
imported>Doug Williamson (Update link.) |
||
| Line 19: | Line 19: | ||
* [[Capital]] | * [[Capital]] | ||
* [[Capital adequacy]] | * [[Capital adequacy]] | ||
* [[Capital | * [[Capital Requirements Directive]] | ||
* [[CET1]] | * [[CET1]] | ||
* [[CRD IV]] | * [[CRD IV]] | ||
Revision as of 20:49, 29 January 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).
