Tier 2 capital

Tier 2 capital,

Definition of Tier 2 capital:

  1. The second part of a two-tier risk-based criterion commonly used by supervisors (for example, the central bank) to assess a financial institution's investment viability. This is also known as surplus equity and involves one percent of subordinate debt, convertible securities and lost debt reserves.

Meaning of Tier 2 capital & Tier 2 capital Definition