Core capital

core capital

The part of a financial institution's capital that comprises equity and disclosed reserves. The other part, which includes loan loss provisions, undisclosed reserves and subordinated debt, is called supplementary capital.

Core capital
The capital required of a thrift institution, which must be at least 2% of assets to meet the rules of the Federal Home Loan Bank.

Core Capital
The minimum amount of capital that a thrift bank, such as a savings bank or savings and loan company, must have on hand in order to comply with Federal Home Loan Bank regulations.

The core capital of a bank comprising paid-up share capital excluding cumulative preference shares, reserves, retained earnings and third-party interests.
Total shareholder return (TSR) ...

tier 1 capital Core capital under the Basel Accords
tier 2 capital Supplementary capital under the Basel Accords
tier 3 capital Capital applicable only to market risk under the Basel Accords ...

Tier 1 refers to core capital while Tier 2 refers to items such as undisclosed resources. TIGER Acronym for Treasury Investors Growth Receipt.

Under the revised guidelines, there are two broad requirements: a minimum level of capital called core capital equal to 3% of total assets, and a Risk-Based Capital ratio equal to 8% of risk-adjusted assets, after December 31, 1992.

5% of total assets, "core capital," which is tangible capital plus goodwill equal to 3% of total assets that may have been acquired in a merger; and risk-based capital equal to 6.4% of risk-weighted assets (rising to 8% after January 1, 1993).

bank's supplementary funds funds such as undisclosed reserves, held by a bank in addition to its core capital of stockholders' funds.
Related definitions of "Tier 2 capital"
Also called supplementary capital ...

Descriptions of the capital adequacy of banks. Tier 1 refers to core capital while Tier 2 refers to items such as undisclosed resources.
Tight money ...

Tier 1 and Tier 2
Descriptions of the capital adequacy of banks. Tier 1 refers to core capital while Tier 2 refers to items such as undisclosed resources.

core capital The capital a thrift is required to have in order to comply with the Federal Home Loan Bank's rules. core holding A substantial long-term holding in a portfolio or fund. A core holding is bought...

See also: Banks, Saving, Expense, Capital structure, Time value of money