Tier 1

From ACT Wiki
Jump to: navigation, search

1. 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), CET1 having superior loss-absorbing quality.


2.

Abbreviation for Tier 1 executive.


See also