Tier-1 capital: Tier 1 capital, used to describe the capital adequacy of a bank, is core capital that includes equity capital and disclosed reserves. Tier 1 capital is essentially the most perfect form of a bank’s capital — the money the bank has stored to keep it functioning through all the risky transactions it performs, such as trading/investing and lending.
Tier-2 capital: Tier-2 capital is the secondary component of bank capital, that makes up a bank’s required reserve. Tier 2 capital is a measure of a bank’s financial strength with regard to the second most reliable forms of financial capital, from a regulator’s point of view. It consists of accumulated after-tax surplus of retained earnings, revaluation reserves of fixed assets and long-term holdings of equity securities, general loan-loss reserves, hybrid (debt/equity) capital instruments, and subordinated debt.
CAR: Capital adequacy ratio is the percentage of total capital(total of tier 1 and tier 2 capitals) to the total risk-weighted assets. It is a measure of banks capital. It helps to prevent bank failure.
Public debt: Public debt includes internal debt comprising borrowings inside the country like market loans; borrowings from RBI on the basis of special securities bills and external debt comprising loans from foreign countries, International financial institutions, NRI deposits.
Final Destination for Goa PSC Notes and Tests, Exclusive coverage of GPSC Prelims and Mains Syllabus, Dedicated Staff and guidence GOAPSC Notes brings Prelims and Mains programs for GOAPSC Prelims and GOAPSC Mains Exam preparation. Various Programs initiated by GOAPSC Notes are as follows:-
- GOAPSC Mains Tests and Notes Program
- GOAPSC Prelims Exam 2024- Test Series and Notes Program
- GOAPSC Prelims and Mains Tests Series and Notes Program
- GOAPSC Detailed Complete Prelims Notes