Tier 1: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Expand.) |
imported>Doug Williamson No edit summary |
||
| Line 6: | Line 6: | ||
Contrasted with Tier 2, which is of lower quality. | Contrasted with Tier 2, which is of lower quality. | ||
Tier 1 is sometimes known as 'going concern' loss absorbing capital. | |||
Tier 1 principally comprises equity, subject to regulatory deductions and the inclusion of some preferred shares and some perpetual bonds. | Tier 1 principally comprises equity, subject to regulatory deductions and the inclusion of some preferred shares and some perpetual bonds. | ||
Tier 2 capital comprises eligible long dated subordinated debt. | Tier 1 capital is classified as Common Equity Tier 1 (CET1) or Additional Tier 1 (AT1) according to its loss-absorbing quality. | ||
Tier 2 capital comprises eligible long dated subordinated debt. | |||
(Tier 2 is sometimes known as 'gone concern' loss absorbing capital.) | |||
== See also == | == See also == | ||
* [[ | * [[Additional Tier 1]] | ||
* [[Basel II]] | * [[Basel II]] | ||
* [[Basel III]] | * [[Basel III]] | ||
| Line 20: | Line 28: | ||
* [[Capital adequacy]] | * [[Capital adequacy]] | ||
* [[Capital Adequacy Directive]] | * [[Capital Adequacy Directive]] | ||
* [[ | * [[Common Equity Tier 1]] | ||
* [[CRD IV]] | * [[CRD IV]] | ||
* [[Equity]] | * [[Equity]] | ||
* [[Going concern]] | |||
* [[Principal write down]] | |||
* [[Subordinated debt]] | * [[Subordinated debt]] | ||
* [[T2]] | * [[T2]] | ||
* [[Tier 2]] | * [[Tier 2]] | ||
Revision as of 13:15, 10 November 2016
Banking - capital adequacy.
(T1).
Tier 1 is the highest quality capital.
Contrasted with Tier 2, which is of lower quality.
Tier 1 is sometimes known as 'going concern' loss absorbing capital.
Tier 1 principally comprises equity, subject to regulatory deductions and the inclusion of some preferred shares and some perpetual bonds.
Tier 1 capital is classified as Common Equity Tier 1 (CET1) or Additional Tier 1 (AT1) according to its loss-absorbing quality.
Tier 2 capital comprises eligible long dated subordinated debt.
(Tier 2 is sometimes known as 'gone concern' loss absorbing capital.)
