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.
References in periodicals archive ?
Jyske Bank AB (CPH:JYSK) reported on Thursday that on 14 September 2017, it has issued AT 1 capital (Additional Tier 1 capital under CRR) of EUR150m at an Euro coupon rate of 4.
The aggregate Tier 1 capital of the 10 Lebanese banks reached $15.
New Zealand's central bank has doubted the effectiveness of Additional Tier 1 capital, suggesting that the value of the product designed to safeguard the global financial system could be suspect, Reuters has reported.
The proceeds of the issue will be used to enhance AUBK's Tier 1 capital base in line with the requirements of Basel III banking standards, due to be phased in 2019 across Kuwait.
Certain types of debt instruments known as contingent convertible bonds (CoCos) are categorised by the Qatar Central Bank as Additional Tier 1 capital.
Tier 1 capital, also referred to as core equity capital, is a term used to describe the capital adequacy of a bank.
However, he added that, ''ultimately, it is not about which funding is cheaper, the fact is that the banks have significantly raised the core Tier 1 capital in one fell swoop, such that they will not need to go to the equity markets for bank capital for a long while more.
However, a larger portion of this capital will have to be made up of higher-quality tier 1 capital or common equity in the bank.
5 per cent 'bail-in' of its own uninsured depositors as well as the absorbing of Laiki's balance sheet -- gave the lender a tier 1 capital ratio of 13 per cent.
That percentage is commonly referred to as a bank's tier 1 capital ratio.
The leverage ratio, or more precisely, the tier 1 leverage ratio, is simply the ratio of tier 1 capital to total assets.
17, 2010 (CENS) -- The lately-released Basel III Accord stipulates that the minimum Tier 1 capital requirement for banks is to be raised to 6% from 4%, and the minimum common equity requirement be raised to 4.