Tier 1 supplier and Tier 2: Difference between pages

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''Commerce - supply chains - supply chain finance (SCF).''
''Banking - capital adequacy.''  


A tier 1 supplier is an individual or organisation that provides a final product directly to a customer.
Tier 2 capital comprises eligible long dated subordinated debt.


All of our tier 1 suppliers are direct links to ourselves, in our supply chain.
It is of lower quality than Tier 1 capital, and its eligible amount for capital adequacy calculation purposes is restricted.
 
 
Contrasted with tier 2 - and other tiers - further along our supply chain.
 
 
:<span style="color:#4B0082">'''''Treasury support for suppliers through supply chain'''''</span>
 
:"There are also alternative [supply chain finance] support structures in use, in particular what is known as ‘deep-tier’ financing.
 
:This approach sees treasury at end customers provide support not just to tier 1 suppliers, but also to those in tiers further along the supply chain.
 
:Such suppliers are mostly smaller companies and more likely to be vulnerable to economic disruption."
 
:''The Treasurer May 2023 Issue 2, p10.''




== See also ==
== See also ==
* [[Contractor]]
* [[AT1]]
* [[Customer]]
* [[Basel II]]
* [[Deep-tier financing]]
* [[Basel III]]
* [[Subcontractor]]
* [[Capital]]
* [[Supplier]]
* [[Capital adequacy]]
* [[Supply chain]]
* [[Capital Adequacy Directive]]
* [[Supply chain finance]] (SCF)
* [[CET 1]]
* [[Tier 1 ]]
* [[CRD IV]]
* [[Tier 2 supplier]]
* [[Equity]]
* [[Tier 3 supplier]]
* [[Subordinated debt]]
* [[Treasury]]
* [[T2]]
 
* [[Tier 1]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Technology]]
[[Category:Trade_finance]]

Revision as of 11:50, 31 July 2016

Banking - capital adequacy.

Tier 2 capital comprises eligible long dated subordinated debt.

It is of lower quality than Tier 1 capital, and its eligible amount for capital adequacy calculation purposes is restricted.


See also