Reserves

Discussion in 'P2.T7. Operational Risk & ERM (25%)' started by shanlane, May 8, 2012.

  1. shanlane

    shanlane Active Member

    Hello,

    I have seen "reserves" listed as Tier 1 capital and tier 2 capital. Tier 1 says "disclosed reserves" while Tier 2 says "undisclosed reserves", so I guess that makes sense. My question is, what distinguishes a "disclosed reserve" from "asset revaluation reserves" and "General provisions or loan loss reserves" which are listed as Tier 2 capital?

    While I am at it, I have also seen unrealized gains as a form of Tier 2 capital. Does that actually count?

    Thanks!

    Shannon

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