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Tier 1 Capital
(redirected from Tier 1)

   Also found in: Encyclopedia, Wikipedia 0.01 sec.
Tier 1 Capital
Capital in a bank that is easy to calculate or liquidate, especially compared to Tier 2 capital. Under the Basel I Accord, Tier 1 capital includes retained earnings and common stock, and occasionally also some preferred stock. Tier 1 capital is considered the bank's core capital and is less risky than Tier 2 capital. It is included in the calculation of a bank's reserve requirements.

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, which includes equity capital and disclosed reserves.

Investopedia explains Tier 1 Capital

Equity capital includes instruments that cannot be redeemed at the discretion of the holder.

Related Terms:
Capital
Capital Structure
Mezzanine Financing
Private Equity
Venture Capital



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The public funds for the government's purchases of preferred shares can be counted into Tier 1 capital, while the DBJ's subordinated loans can be included into Tier 2 capital.
The capital increase follows on from NBAD's receipt of AED 4 billion of Tier 1 capital from the Abu Dhabi Government in February.
Most plans are based on the tiers system that encloses a three-tiered formulary where prescription drug products are classified as Tier 1, Tier 2 or Tier 3.
 
 
 
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