Tier 2: Difference between revisions

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* [[Capital adequacy]]
* [[Capital adequacy]]
* [[Capital Requirements Directive]]
* [[Capital Requirements Directive]]
* [[CET1]]
* [[Common Equity Tier 1]] (CET1)
* [[CRD IV]]
* [[CRD IV]]
* [[Equity]]
* [[Equity]]

Revision as of 17:41, 25 June 2022

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