No Deal 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 == | ||
[ | * [[AT1]] | ||
* [[Basel II]] | |||
[[ | * [[Basel III]] | ||
[[ | * [[Capital]] | ||
* [[Capital adequacy]] | |||
* [[Capital Requirements Directive]] | |||
* [[CET1]] | |||
* [[CRD IV]] | |||
* [[Equity]] | |||
* [[Going concern]] | |||
* [[Gone concern]] | |||
* [[Hybrid]] | |||
* [[Subordinated debt]] | |||
* [[Tier 1]] | |||
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).
