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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.
The higher your score, the higher your tier, the better your credit. If you have a FICO score of over 700, congratulations; youâre generally considered a âwell-qualified buyer.â That Tier 1 designation (or Tier 0 if your credit is really shiny) should qualify you for the best loan rates, often lower than the prime rate.he Tier 1/2/3 credit system is designed to help a credit manager tell at a glance what kind of business opportunityâor credit riskâyou are. If a finance company considers a loan risky, they either wonât make it or demand compensation for taking on the risk by charging higher loan rates and/or fees.