Multiple choice

Which of the following do(es) not fall under Tier II capital?

  1. Revaluation reserves

  2. Perpetual non-cumulative preference shares

  3. Perpetual cumulative preference shares

  4. Subordinated debt

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

Tier II capital includes Revaluation reserves, Undisclosed reserves, Perpetual cumulative preference shares, Subordinated term debt and General provisions etc. Thus, option 2 is the correct answer.