Tier 1

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Revision as of 11:48, 17 May 2023 by imported>Doug Williamson (Add definition - source - The Treasurer, Issue 2, May 2023, p10.)
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1. Banking - capital adequacy


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), CET1 having superior loss-absorbing quality.


Abbreviation for Tier 1 executive.

3. Investment banking.

Tier 1 investment banks are the largest globally across multiple product categories.

They include JP Morgan, Goldman Sachs, Citigroup, Morgan Stanley and Bank of America.


More generally, any larger, better known or more competent entity.

5. Business relationships - supply chains - suppliers.

Another organisation that our organisation deals with directly.

See also