This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: the strength of the total capital structure. • Tier II is supplementary capital and often includes reserves and subordinate capital. It also protects the depositors but can be withdrawn. • Both the banks are well capitalized. Contd. . Interpretations • A good CAR indicates that the bank is able to protect the interests of the investors. • The Tier I capital absorbs the inherent risk and they avoid the risky schemes....
View Full Document
- Spring '10
- Capital requirement, Tier 1 capital, tier, NBAD