Prime 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 == | == See also == | ||
* [[ | * [[AT1]] | ||
* [[ | * [[Basel II]] | ||
* [[ | * [[Basel III]] | ||
*[[ | * [[Capital]] | ||
* [[ | * [[Capital adequacy]] | ||
* [[ | * [[Capital Adequacy Directive]] | ||
* [[ | * [[CET1]] | ||
* [[ | * [[CRD IV]] | ||
* [[ | * [[Equity]] | ||
* [[ | * [[Going concern]] | ||
* [[Gone concern]] | |||
[[ | * [[Hybrid]] | ||
[[ | * [[Subordinated debt]] | ||
[[ | * [[Tier 1]] | ||
[[ | |||
Revision as of 07:10, 21 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 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).
