Multiple choice

Subordinated debt instruments will be limited to what per cent of Tier I capital of the bank?

  1. 100%

  2. 50%

  3. 20%

  4. 70%

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Subordinated debt instruments will be limited to 50% of Tier I capital of the bank. These instruments, together with other components of Tier II capital, should not exceed 100% of Tier I capital.