Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is Tier-II capital? How many times can Tier-II capital be leveraged with banks?

April 26, 2017Banks Capital leveraged tier-ii times

0

10 Posted

What is Tier-II capital? How many times can Tier-II capital be leveraged with banks?

1 Answer

0

10 Posted

Tier II capital consists of subordinated debt, revaluation reserves, provision for standard assets, special reserve (swap) and investment reserve and along with Tier I capital, constitutes capital funds of a bank or NBFC. As per current regulations and banking practices, Tier II capital can be leveraged up to six times.