Tier 1 capital

BankingRangePercentage

Definition

Tier 1 capital is the core measure of a bank's financial strength from a regulator's point of view. It consists of the types of financial capital considered the most reliable and liquid, primarily Shareholders' equity. Examples of Tier 1 capital are common stock, preferred stock that is irredeemable and non-cumulative, and retained earnings. <a href="http://en.wikipedia.org/wiki/Tier_1_capital">Source</a>

Tags

capital, equity, earning