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Going Concern Capital – Fincyclopedia

Going Concern Capital

Banking
Additional Tier-1 Capital Instrument
January 21, 2023
Islamic Finance
AT1 Sukuk
January 22, 2023

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:

  1. Tier 1 capital (going-concern capital): a) common equity tier 1 and b) additional tier 1 capital (AT1 capital);
  2. Tier 2 capital (gone-concern capital).

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