What is Tier 1 Capital?

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What is Tier 1 Capital?

Tier 1 Capital (T1) comprises of what is considered the highest quality capital -  that which is most effective at absorbing any losses by a firm.

Capital instruments within Tier 1 are further sub-divided as follows:

• Common Equity Tier 1 (CET1)
• Additional Tier 1 (AT1)

The characteristics of those capital instruments within Tier 1 display permanence, deep subordination and discretionary and mandatory cancellation of distributions.

If you would like to clarify what you should be reporting within Tier1, please do not hesitate to contact us.