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Tier 2 capital, or supplementary capital, include a number of important and legitimate constituents of a bank's capital base. These forms of banking capital were largely standardized in the Basel I accord, issued by the Basel Committee on Banking Supervision and left untouched by the Basel II accord.ier 2 capital, or supplementary capital, include a number of important and legitimate constituents of a bank's capital base. These forms of banking capital were largely standardized in the Basel I accord, issued by the Basel Committee on Banking Supervision and left untouched by the Basel II accord.
In practical terms, a tier 1 network is one of the few networks that are large enough that they do not need to pay other tier 1 networks in order to use their networks, and charge smaller networks for access to their network. A tier 1 network is not to be confused with a T-1 line. The Tier 1 networks, in combination, form the backbone of the internet. They are large enough to support peering agreements amongst themselves, so internet traffic can go across any of their networks. Whenever possible, though, a Tier 1âs own network traffic has the highest priority on its own network.