Tier 1 Capital

Filed Under »
Dictionary Says

Definition of 'Tier 1 Capital'

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 Says

Investopedia explains 'Tier 1 Capital'

Equity capital includes instruments that can't be redeemed at the option of the holder.

Related Definitions

  • Capital Adequacy Ratio - CAR

    A measure of a bank's capital. It is expressed as a percentage of a bank's risk weighted credit exposures. Also known as "Capital to Risk Weighted Assets Ratio (CRAR)."
    Read More »
  • Tier 2 Capital

    A term used to describe the capital adequacy of a bank. Tier II capital is secondary bank capital that includes items such as undisclosed reserves, general loss reserves, subordinated ...
    Read More »
  • Undisclosed Reserves

    The unpublished or hidden reserves of a financial institution that may not appear on publicly available documents such as a balance sheet, but are nonetheless real assets, which are ...
    Read More »
    • Capital Requirement

      The standardized requirements in place for banks and other depository institutions, which determines how much liquidity is required to be held for a certain level of assets through ...
      Read More »
    • Basel Accord

      A set of agreements set by the Basel Committee on Bank Supervision (BCBS), which provides recommendations on banking regulations in regards to capital risk, market risk and operational ...
      Read More »
    • Basel I

      A set of international banking regulations put forth by the Basel Committee on Bank Supervision, which set out the minimum capital requirements of financial institutions with the goal of ...
      Read More »
    • Excess Reserves

      Capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors or internal controls. For commercial banks, excess reserves are measured ...
      Read More »
    • Tier 3 Capital

      Tertiary capital held by banks to meet part of their market risks, that includes a greater variety of debt than tier 1 and tier 2 capitals. Tier 3 capital debts may include a greater ...
      Read More »
    • Core Capital

      The minimum amount of capital that a thrift bank, such as a savings bank or savings and loan company, must have on hand in order to comply with Federal Home Loan Bank regulations. Core ...
      Read More »
    • Capital Purchase Program - CPP

      A program sponsored by the U.S. Treasury designed to provide new capital to banks, which will in turn allow them to loan more money to businesses and thus stimulate the economy. Under ...
      Read More »

Articles Of Interest

Partner Links