# Tier 1 (tier one)

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- Post ID: 592603
- Modified: 2023-07-25T21:12:41+00:00
- Language: en

## Definition

According to the definition of the Bank for International Settlements, which has been adopted by most supervisory authorities, - the core capital of a bank, consisting of share capital, open reserves and retained earnings (bank own resources; eigene Mittel), and - the supplementary capital credited to a certain extent, consisting of hidden reserves and subordinated bonds. - In Germany, the Federal Financial Supervisory Authority (BaFin) defines the requirements in detail by means of corresponding guidelines. - According to Solvency II, best quality class, primarily paid-in capital (capital subscribed). - Cf. BaFin Annual Report 2006, p. 51 (components of the solvency balance sheet), BaFin Annual Report 2012, p. 136 (Tier 1 ratios of German banks; explanatory notes). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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