Tier 2 Capital

What Does Tier 2 Capital Mean?
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 term debt, and more.

Investopedia explains Tier 2 Capital
This is related to Tier 1 Capital.

Related Terms

Advanced Internal Rating-Based - AIRB
Basel Accord
Basel I
Capital Adequacy Ratio - CAR
Capital Requirement
Excess Reserves
Tier 1 Capital
Tier 3 Capital
Undisclosed Reserves
More Related Terms

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