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English definition of “Tier 2 capital”

Tier 2 capital

noun [U]
 
 
FINANCE, BANKING
one of the two ways used to measure the strength of a bank's financial position, which is considered a less certain measure than Tier 1 capital: Tier 2 capital includes undisclosed reserves, revaluation reserves, and general provisions.
(Definition of Tier 2 capital from the Cambridge Business English Dictionary © Cambridge University Press)
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