Tier 1 capital,
Definition of Tier 1 capital:
First part of the two-tier risk based capital standard commonly used by regulatory agencies (such as a central bank) to assess a financial institutions capital adequacy. Tier 1 capital includes common stock and retained earnings and is the basis on which a bank, building society, credit union supports its deposit and lending operations. Also called core capital or primary capital.
How to use Tier 1 capital in a sentence?
- The tier 1 capital was really interesting to me and I had to know more, so I asked my friend about it.
- When you are dealing with a tier 1 capital you have to decide if you really think it is the right way to proceed.
- Although the bank had taken some significant losses in the recent economic slump, its TIER 1 CAPITAL resources, as disclosed to their new partnering institution, were untouched, making the merger an entirely profitable one.
Meaning of Tier 1 capital & Tier 1 capital Definition