Tier 2 Capital

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Tier 2 Capital

Capital in a bank that is difficult to calculate or liquidate, especially as compared to Tier 1 capital. Under the Basel I Accord, tier 2 capital includes revaluation reserves (or the increase in the value in an asset after it is reappraised), general provisions (or money that the bank has lost but has been unable to calculate), and subordinated debt (or debt that, in the event of default, receives payment only after some other debt). Tier 2 capital is included in calculations of a bank's reserve requirements but is not considered as reliable as Tier 1 capital.
References in periodicals archive ?
Air-to-air aftercoolers and turbos made Tier 2 engines visually distinct from earlier engines.
Air-to-air after-coolers and turbos made Tier 2 engines visually distinct from earlier engines.
Amounts of restricted core capital elements in excess of these limits generally may be included in tier 2 capital, subject to the limit that the aggregate amount of subordinated debt and restricted core capital elements (other than cumulative perpetual preferred securities) included in tier 2 capital may not exceed 50 percent of tier 1 capital.
SATA RAID provides the performance and availability required for Tier 2 (near-line) storage at the most attractive cost per MB.
The EDSTAC proposal appears to suggest that for chemicals which are positive in the Tier 1 screens, avian reproduction testing is necessary at Tier 2, although the triggers for requiring such an avian study are not defined.
is a Tier 2 firm that assembles seat covers for Johnson Controls as part of an in-line sequencing and assembly program for GM's complex near Atlanta.
He concludes from additional experiments that a muscle-inducing substance is located in tier 3, and it diffuses into tier 2 when the cells are in contact.
Most of Cummins off-highway equipment customers in China utilize our locally built Tier 1 and Tier 2 engines," commented Ric Kleine, Cummins Vice President, Off-Highway Business.
Tier 1 tools automate operations while Tier 2 tools automate the operation of technology.
Tier 1 products typically respond well to DTC advertising, whereas tier 2 and 3 products may not benefit as highly from DTC advertising but do benefit from journal advertising.
OAKVILLE, Ontario -- Continued growth, profitability and stability leads to Graduation from Tier 2 to Tier 1