Under current capital requirements, Tier 1 Capital takes of all of the following into account except:

Question

Quizplus · Accepted Answer

Mandatory convertible debt is not included in Tier 1 Capital as it is considered a form of debt rather than equity. Tier 1 Capital primarily consists of core equity components such as common stockholder's equity, non-cumulative perpetual preferred stock, and certain reserves, but excludes items like goodwill and equity in subsidiaries.

Under Current Capital Requirements, Tier 1 Capital Takes of All