Question: How does Tier 1 capital differ from Tier 2 capital? Tier 1 is more risk - sensitive Tier 2 represents shareholder equity Tier 1 is

How does Tier 1 capital differ from Tier 2 capital?
Tier 1 is more risk-sensitive
Tier 2 represents shareholder equity
Tier 1 is considered core capital
Tier 2 includes loan loss reserves
How does Tier 1 capital differ from Tier 2

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