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Business Glossary


Business Definition 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 1 equity capital (common stock and qualifying preferred stock), plus tier 2 capital (reserves for loan losses, subordinated debt, and preferred stock not counted as Tier 1 capital).

Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.


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