tier 3 capital
Definition
Capital held by banks to cover certain classes of risk, including foreign currency exchange risk and commodities risk. Tier 3 capital, defined by the Basel II Accord, may consist of short-term subordinated debt, but is limited to 250% of the bank's tier 1 capital, and is subject to other restrictions.
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Nearby Terms
- tie in contract
- tie up
- tied aid
- tied loan
- tier
- tier 3 capital
- Tier One
- Tier Two
- tiger
- tiger economy
- tight
