Question

Which of the following are not the components of Tier 1 (Primary Capital) for maintaining the requirements as per BASEL regulations

Q: Answer-&lt;p&gt;Which of the following are not the components of Tier 1 (Primary Capital) for maintaining t...

Elements of Common Equity component of Tier 1 capital will comprise the following Common shares paid-up equity capital issued by the bank Stock surplus share premium resulting from the issue of common shares Statutory reserves Capital reserves representing surplus arising out of sale proceeds of assets Revaluation reserves arising out of change in the carrying amount of a bankrsquos property consequent upon its revaluation may, at the discretion of banks, be reckoned as CET1 capital at a discount of 55 Therefore, all are included.