Search

12 March, 2022

What are the components of Tier-I & Tier-II capital according to Basel Accord

 The components of Tier-I & Tier-II capital according to BASEL accord are

TIER-1 (core capital):

1. Paid up capital

2. Non payable share premium a/c

3. Statutory reserve

4. General reserve

5. Retained earning

6. Minority interest to subsidiaries

7. Non cumulative irredeemable preference shares

8. Dividend equalization account

 

 TIRE 2 (supplementary capital):

1. General provision (1% of CL)

2. Assets revaluation reserves

3. All other preference shares

4. Exchange equalization a/c