Question
Which of the following is not a part of the Tier 1
Capital of a bank?Solution
Tier 2 Capital :Ā represents āsupplementary capitalā such as undisclosed reserves, revaluation reserves, general loan-loss reserves, hybrid (debt/equity) capital instruments, and subordinated debt of the financial institution. Tier 2 Capital is generally less reliable or secure than Tier 1 capital, and therefore must be considered separately when evaluating the riskiness of a bank
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