Definition Definition

Tier 2 Capital

Tier 2 Capital Comprises Property Revaluation Reserves, Undisclosed Reserves, Hybrid Capital, Subordinated Term Debt and General Provisions. This is Supplementary Capital.

Tier 2 capital is the supplemental long-term funds for a bank including allowance for loan and lease losses, subordinated debt capital, selected preferred stock, and equity notes.

Share it: CITE

Related Definitions