What are the components of tier-1 and tier-2 capital according to Basel accord.
Posted by Ripon Abu Hasnat on Wednesday, May 27, 2015 | 0 comments
What are the components of tier-1 and tier-2 capital
according to Basel accord.
Ans’ In the flowing are given
the components of tier-1 and tier-2
capital according to Basel accord.
|
Tier-1
(Core capital)
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Tier-2
(Supplementary Capital)
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Tier-3
( Additional Supplementary Capital)
|
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1. Paid up capital.
2. Non Repayable share premium.
3. Statutory Reserve.
4. General Reserve.
5. Retained Earnings.
6. Dividend.
7. Equalization Account.
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1. General Provision.
2. Assets Revaluation Reserves (up to 50%)
3. Revaluation Reserves for Securities (up to 50%)
4. Perpetual Subordinate Debt. (up to 30% of tier-1)
5. Investment loss offsetting Reserve.
6. Exchange Equalization account.
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Consisting of short term subordinate
debt ( original/ residual maturity less than or equal to five years but
greater than or equal to two years.
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