Tier 1 Capital

What Does Tier 1 Capital Mean?
A term used to describe the capital adequacy of a bank. Tier I capital is core capital, this includes equity capital and disclosed reserves.

Investopedia explains Tier 1 Capital
Equity capital includes instruments that can't be redeemed at the option of the holder.

Related Terms

Basel Accord
Basel I
Capital Adequacy Ratio - CAR
Capital Purchase Program - CPP
Capital Requirement
Excess Reserves
Key Ratio
Tier 2 Capital
Tier 3 Capital
Undisclosed Reserves
More Related Terms

Related Links

Does The Basel Accord Strengthen Banks? - This 1988 agreement sought to decrease the potential for bankruptcy among major international banks.
How Do Banks Determine Risk? - Find out how economic capital and regulatory capital affects risk management.
Compare Local Interest Rates - Search and compare the best checking and savings rates nationwide from Bankrate.com. Click Here!
What Are Central Banks? - They print money, they control inflation, and much, much more. All you need to know about central banks is here.
The Federal Reserve - Few organizations can move the market like the Federal Reserve. As an investor, it's important to understand exactly what the Fed does and how it influences the economy.
Is Your Bank On Its Way Down? - Find out how the Tier 1 capital ratio can be used to tell if your bank is going under.
Is there a form of insurance for my investments?

Get a new investing term in your inbox each day!

- join our Term of the Day!