NAV and Tier 2: Difference between pages

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Net Asset Value (or Net Asset Valuation).
''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.
 
 
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 ==
== See also ==
* [[Net asset value]]
* [[AT1]]
 
* [[Basel II]]
[[Category:Investment]]
* [[Basel III]]
* [[Capital]]
* [[Capital adequacy]]
* [[Capital Adequacy Directive]]
* [[CET1]]
* [[CRD IV]]
* [[Equity]]
* [[Going concern]]
* [[Gone concern]]
* [[Hybrid]]
* [[Subordinated debt]]
* [[T2]]
* [[Tier 1]]

Revision as of 13:28, 10 November 2016

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.


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