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.
Tight money ...
To be adequately capitalized under federal bank regulatory agency definitions, a bank holding company must have a Tier 1 capital ratio of at least 4%, a combined Tier 1 and Tier 2 capital ratio of at least 8%, and a leverage ratio of at least 4%, ...
Department of Agriculture, Child and Adult Care Food Program (CACFP), for Tier 1 and Tier 2.
An abbreviation of order ticket.
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.
TIGER ...
The main use of risk weighted assets is to calculate tier 1 and tier 2 capital adequacy ratios.
Tertiary capital held by banks to meet part of their market risks, that includes a greater variety of debt than tier 1 and tier 2 capitals.
Assets given a 100% risk rating, such as commercial loans and consumer installment loans, require an institution to maintain total equity capital ( tier 1 and tier 2 capital) equal to 8% of the asset's book value.
This led to the 1988 Basel Accord, which replaced the asset-based primary capital requirements for US commercial banks. The concepts of primary and secondary capital were incorporated into the new accord as tier 1 and tier 2 capital.
 See also: Banks, Expense, Billion, Values, Saving
  
|
RSS
