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Home > QFINANCE Dictionary > Definition of Tier 2 capital

Definition of

Tier 2 capital

Banking

bank's supplementary funds funds such as undisclosed reserves, held by a bank in addition to its core capital of stockholders' funds.

Related definitions of "Tier 2 capital"

Tier 2 capital - Related Articles
  • Eurosystem Central Banks and the TARGET2 Debt Debate

    Viewpoints

    to the NCBs’ “capital keys,” which are the shares of the NCBs in the capital of the ECB. The capital key of the Bundesbank is 27%, so the Bundesbank—and ultimately the German taxpayer—is at risk for 27% of the total TARGET2 lending of €457 billion, i.e. €123 billion.
    By John Whittaker

  • Renewing Capitalism

    Viewpoints

    Matthew Bishop is the US Business Editor and New York Bureau Chief of The Economist. He was previously the magazine’s London-based Business Editor. His latest book, The Road from Ruin: How to Renew Capitalism and Put America Back on Top, with Michael Green, was published by Crown in February 2010
    By Matthew Bishop

  • Capital Structure: Implications

    Best Practice

    Figure 2 graphically illustrates the impact of capital structure on stock price, keeping in mind that as we go from no debt to an increasing D/E we are reducing the number of shares. The use of too little debt (L) results in a lower stock price, and too much debt (M) also lowers the stock price.
    By John C. Groth

  • Sources of Venture Capital

    Best Practice

    This type of funding is sometimes referred to as “seed capital.”2 The founders may also seek bank financing, but if the bank is willing to extend credit it will probably be based on their personal assets or borrowing capacity. Banks rarely lend to companies that do not have a track record of revenues
    By Lawrence Brotzge

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Definitions of ’Tier 2 capital’ and meaning of ’Tier 2 capital’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’Tier 2 capital’ and other financial terms with our online QFINANCE Financial Dictionary.

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