Question
All of the following are considered under Tier II
capital of a bank, except ________Solution
Tier II capital is one of the components of regulatory capital of a bank. It is also known as supplementary capital. Tier II items qualify as regulatory capital to the extent that they can be used to absorb losses arising from a bank's activities. Tier II's capital loss absorption capacity is lower than that of Tier I capital. Tier II capital consists of:
- undisclosed reserves,
- revaluation reserves,
- general provisions and loss reserves,
- hybrid capital instruments (debt capital instruments, perpetual cumulative preference shares/ Redeemable Non-Cumulative Preference Shares / Redeemable Cumulative Preference Shares)
- subordinated debt
- investment reserve account
In the following questions, you will find two columns containing three sentences each. Column 1 consists of sentences A, B, and C, with one blank in on...
- In the following question, two columns are given containing three sentences/phrases each. In the first column, sentences/phrases are A, B, and C; in the se...
Match Column I and Column II and choose the correct match from the given choices
Match Column I and Column II and choose the correct match from the given choice
Column (1)
Directions: Choose the combination that completes the sentences. If none of the options given forms a correct sentence after combination, mark (e), i...
Column (1)
Column (2)
(A) ChildLine has been in operation
(D) the scheme is not yet available.
(B) It has functione...