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Ariel (@Prolotario1): The Purpose of Tier 2 Reserves


Ariel@Prolotario1 Making It Plain: Purpose of Tier 2 Reserves • Tier 1 Capital: This is the thick, strong inner wall, made of things like shareholder equity and retained earnings. It’s the first line of defense against financial trouble. • Tier 2 Capital: This is the second wall, not as strong as the first but still valuable. It’s made of things like undisclosed reserves, subordinated debt, and hybrid capital instruments. Tier 2- A revaluation asset. Which is what the IQD and other foreign currency is considered. Banks are holding meetings to help set up this safety net against the coming currency…

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