Tier 2 capital

Description

Tier 2 capital, or supplementary capital, include a number of important and legitimate constituents of a bank’s capital base. (Undisclosed Reserves +General Loss reserves + Hybrid debt capital instruments and subordinated debts)

Related formulas

Variables

T2Tier 2 capital (dimensionless)
URUndisclosed Reserves (dimensionless)
GLRGeneral Loss reserves (dimensionless)
CdHybrid debt capital (dimensionless)