Tier 1 Capital

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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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Basel 3 Capital Adequacy Ratio Tier 2 Capital			In a meeting of the Bank for International Settlements' Basel Committee on Banking Supervision, central banks and financial supervision authorities from Japan, the United States, European nations and others agreed that the ''predominant form of Tier 1 capital must be common shares and retained earnings. Central banks agree to seek bank capitalization through common stock by Japan Weekly Monitor The CBUAE has now stated that banks only need to have a minimum Tier 1 capital ratio of seven per cent (included in a minimum total capital ratio of 11 per cent) at end-September 2009 and eight per cent (total capital ratio of 12 per cent) by end-June 2010. New CAR rules for UAE banks by CPI Financial For the period over which we have good data (slightly more than a decade), the ratio of Tier 1 capital to assets does not have a strong cyclical component, though it drops before the current recession and rises later on. Bank lending, capital, booms, and busts by Bianco, Timothy; Haubrich, Joseph G. / Economic Trends			Thrift Institutions Advisory Council Thrift Plan Throughput Agreement Throwaway Thundering Herd Tick Tick Index Tick Indicator Tick Mark Tick Test Tick-test rules Ticker Ticker Symbol Ticker Tape Ticket TICs Tide Tie-In Agreement tie-in contract Tiebreaker Tied Loan Tied Selling Tiempo de validez de una opcion tier Tier 1 and Tier 2 Tier 1 Capital Tier 2 Capital Tier I, II, III, or IV data center Tiered Market TIGER Tiger Economy Tight Tight Credit Tight Market Tight Money TIGRSM Tiin TIIS Tiki Till Till Money Till-Forbid Tilted Portfolio timber investment management organization Time Card Time Decay Time Deposit Time Draft Time Horizon time is of the essence Time Letter of Credit			Tientsen Tientsen Tientsin Tientsin Tientsin American-Chinese Treaty of 1858 Tientsin Anglo-Chinese Treaty of 1858 Tientsin French-Chinese Treaty of 1858 Tientsin French-Chinese Treaty of 1885 Tientsin Russo-Chinese Treaty of 1858 Tientsin, China Tientsin, China TIEP TIEPF tiepin tiepin tiepins Tiepolo Tiepolo Tiepolo, Giovanni Battista Tiepolo, Giovanni Battista Tiepolo, Giovanni Domenico tier tier tier tier tier Tier 1 Tier 1 Tier 1 (disambiguation) Tier 1 and Tier 2 Tier 1 Capital Tier 1 Carrier Tier 1 ISP Tier 1 network Tier 2 Tier 2 capital Tier 2 network Tier 3 network tier array tier building Tier I data center Tier I, II, III, or IV data center Tier II data center Tier III data center Tier IV data center Tier One Tier One Tier One Capital Tier one carrier tier structure tier table Tier Two Tier Two Capital tier up tierce tierce Tierce de Picardie

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