Tier 2 capital

Roles that need it

• Capital Reporting Analyst
• Debt Capital Markets Analyst
• FIG Coverage Analyst
• Treasury Analyst
• Credit Research Analyst

Skills it belongs to

• Basel framework and capital
• Financial markets knowledge

Related concepts

• CET1 (Common Equity Tier 1)Common Equity Tier 1 is the highest quality layer of a bank's own funds: ordinary shares, share premium, retained earnings and other reserves, minus regulatory deductions. The CET1 ratio divides it by risk-weighted assets and must be at least 4.5% under the CRR, before buffers and Pillar 2.
• Additional Tier 1 (AT1)Additional Tier 1 capital consists of perpetual instruments that absorb losses while the bank is still a going concern, through conversion into shares or a write-down when CET1 falls below a trigger. Together with CET1 it forms Tier 1 capital. AT1 bonds are also called contingent convertibles or CoCos.
• MRELMREL, the minimum requirement for own funds and eligible liabilities, is the amount of capital and bail-in-able debt that a bank in the EU must hold so that resolution authorities can absorb losses and recapitalise it. The Single Resolution Board or national resolution authority sets it bank by bank under the BRRD and SRMR.

Sources

• Regulation (EU) No 575/2013 (Capital Requirements Regulation), EUR-Lex (external site) accessed 31 Oct 2026
• The Basel Framework, BIS (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.