What is Additional Tier Capital?
Additional Tier Capital A regulatory capital component under Basel III, referring to Tier 1 capital instruments that are not Common Equity Tier 1 (CET1) but still qualify to absorb losses while a bank remains a going concern.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Additional Tier Capital” Used in Practice?
Banks must report Additional Tier Capital separately from Common Equity Tier 1 to demonstrate compliance with Basel III requirements.
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Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
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What is Additional Tier Capital?
A regulatory capital component under Basel III, referring to Tier 1 capital instruments that are not Common Equity Tier 1 (CET1) but still qualify to absorb losses while a bank remains a going concern.
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