Sunday, July 9, 2017

What are the Ingredients of Core Capital (Tier I) in Bank?



Answer
Tier 1 capital called ‘Core Capital’ comprises of highest quality of capital elements:

  • Paid up capital
  • Non-repayable share premium account
  •  Statutory reserve
  • General reserve
  •   Retained earnings
  • Minority interest in subsidiaries
  •   Non-cumulative irredeemable preference shares
  •   Dividend equalization account

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