Under Basel III, Tier 2 (non-equity capital) for U.S. insured banks includes limited allowance for loan and lease losses and preferred and subordinated debt with previous limits under Basel II eliminated on subordinated debt, limited preferred stock, and the amount of Tier 2 Capital included in total capital.

Question

Quizplus · Accepted Answer

Under Basel III, Tier 2 capital for U.S. insured banks includes a limited allowance for loan and lease losses and preferred and subordinated debt, and previous limits under Basel II are eliminated on subordinated debt, limited preferred stock, and the amount of Tier 2 Capital included in total capital.

Under Basel III, Tier 2 (Non-Equity Capital) for U