Tier 1 Capital refers to core capital consisting of Capital, Statutory Reserves, Revenue and other reserves, Capital Reserves (excluding Revaluation Reserves) and unallocated surplus/ profit but excluding accumulated losses, investments in subsidiaries and other intangible asset.
Tier 1 Capital means core capital for a banking firm that includes common stock, undivided profits, selected preferred stock and intangible assets, and minority interest in subsidiary businesses.