Karim, Dr Dilruba; Fic, Dr Tatiana; Barrell, Ray; … - National Institute of Economic and Social Research - 2011
The consensus among financial regulators is that Tier 2 capital is inferior to Tier 1, both in terms of incentives for an ongoing bank and regarding the protection it offers in the case of failure. Some economists, while not denying the benefits of Tier 1, suggest that there may be benefits of...