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Tier 1 Capital
(redirected from Tier One Capital)

   Also found in: 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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