total capital

Dictionary of Banking Terms for: total capital
total capital

bank supervisor’s measure of a bank’s qualifying capital in computing itsrisk-based capitalreserves. Total capital is measured as follows: tier 1equity capital (common stock and qualifying preferred stock), plus tier 2capital (reserves for loan losses, subordinated debt, and preferred stock not counted as Tier 1 capital).

Copyright (c) by Barron's Educational Series. Reprinted by arrangement with the publisher of this site.