Sunday, July 9, 2017

What are the Ingredients of Supplementary Capital (Tier II) ?



Answer:
Tier 2 capital called ‘Supplementary Capital’ represents other elements which fall short of some of the characteristics of the core capital but contribute to the overall strength of a bank:
a) General provision
b) Revaluation reserves
·        Revaluation reserve for fixed assets
·        Revaluation reserve for securities
·        Revaluation reserve for equity instrument
c) All other preference shares
d) Subordinated debt

No comments:

Post a Comment