Capital will be categorized into two tiers: Tier 1 i.e., Core Capital comprises the highest quality
capital elements and Tier 2 i.e., Supplementary Capital represents other elements which fall short
of some of the characteristics of the core capital but contribute to the overall strength of a bank1.
The constituents of core capital and supplementary capital are enclosed at Annexure - I.
Revaluation reserves against held to maturity (HTM) securities (up to 50% of the revaluation
reserves) has been added to the components of supplementary capital. Besides, 'Hedging the price
risk of commodity transactions' has been included in Short-term self liquidating trade related
contingencies.
By: Bangladesh Bank
capital elements and Tier 2 i.e., Supplementary Capital represents other elements which fall short
of some of the characteristics of the core capital but contribute to the overall strength of a bank1.
The constituents of core capital and supplementary capital are enclosed at Annexure - I.
Revaluation reserves against held to maturity (HTM) securities (up to 50% of the revaluation
reserves) has been added to the components of supplementary capital. Besides, 'Hedging the price
risk of commodity transactions' has been included in Short-term self liquidating trade related
contingencies.
By: Bangladesh Bank
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