A bank’s capital that can absorb losses without triggering bankruptcy or failure of the bank. A going concern capital can cover unexpected losses and allow the bank to continue operating as “business as usual”. It reflects the total regulatory capital that consists of:
- Tier 1 capital (going-concern capital): a) common equity tier 1 and b) additional tier 1 capital (AT1 capital);
- Tier 2 capital (gone-concern capital).
Comments