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Discuss the four capital ratios depository institutions must calculate and monitor under Basel III. need more clearly explain on the: Tier 2 capital : It

Discuss the four capital ratios depository institutions must calculate and monitor under Basel III.

need more clearly explain on the: Tier 2 capital : It includes instruments with original maturity of more than 5 years.

The Total capital of bank or the total adequacy ratio is Tier 1 capital plus Tier 2 capital and the total capital requirement is 8% of RWA.

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