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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.
And to Rogier's remark, I do take a lot of sympathy with that view and the view of Bruno that tier three just introduces an additional layer of complexity. For many years we have had something that is meant to serve as going concern loss-absorbing capital. It's called tier two.here is a lot of focus on coupon deferral and not all banks disclose enough information to be able to accurately assess that risk. And on top of that, the ECB, as you say, is now more focused on its own capital adequacy requirements and some countries have disclosed those, other countries havenât.