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 formulasVariables
| T2 | Tier 2 capital (dimensionless) |
| UR | Undisclosed Reserves (dimensionless) |
| GLR | General Loss reserves (dimensionless) |
| Cd | Hybrid debt capital (dimensionless) |