Glossary entry (derived from question below)
English term or phrase:
tiers (uppper and lower)
Spanish translation:
nivel superior e inferior
Added to glossary by
Margarita Ezquerra (Smart Translators, S.L.)
Sep 23, 2010 07:57
13 yrs ago
English term
United Kingdom
Spanish Interpreter, Translator & Tutor
Native in: Spanish (Variant: Standard-Spain)
Works in: English to Spanish
tiers (uppper and lower)
English to Spanish
Bus/Financial
Finance (general)
prospectus
I imagine related to Basilea II agreement and could they be what is referred to as Pilar I, II y III?
As part of these commitments, XYZ has agreed (subject to approval by the EU College of Commissioners) that, unless otherwise agreed, neither XYZ nor any of its direct or indirect subsidiaries will pay investors any dividends or coupons on existing hybrid capital instruments (including preference shares, B shares and UPPER AND LOWER TIER-2 instruments).
Any help appreciated
TIA
Myriam
As part of these commitments, XYZ has agreed (subject to approval by the EU College of Commissioners) that, unless otherwise agreed, neither XYZ nor any of its direct or indirect subsidiaries will pay investors any dividends or coupons on existing hybrid capital instruments (including preference shares, B shares and UPPER AND LOWER TIER-2 instruments).
Any help appreciated
TIA
Myriam
Proposed translations
(Spanish)
| 3 +1 | nivel superior e inferior |
Margarita Ezquerra (Smart Translators, S.L.)
|
Change log
Sep 26, 2010 07:59: Margarita Ezquerra (Smart Translators, S.L.) Created KOG entry
Proposed translations
+1
5 mins
Margarita Ezquerra (Smart Translators, S.L.)
Spain
Spain
Native in Spanish
Specializes in field
Spain
Margarita Ezquerra (Smart Translators, S.L.)
Accredited translators 20 yrs experience
Native in: Spanish
Works in: English to Spanish, Spanish to English, French to Spanish
Related KudoZ points
:
2039
Selected
nivel superior e inferior
What do Tier 1, Upper Tier 2 and Lower Tier 2 mean?
A bank's capital is made up of share capital, reserves and a series of dated and hybrid capital instruments, which are divided, based on their charatceristics, into categories referred to as Lower Tier 2, Upper Tier 2 and Tier 1. Capital in the form of debt instruments is always sub-ordinated becuase senior debt does not count as bank capital. This debt has to comply with regulatory guidelines concerning its characteristics in order to count as capital. In setting these guidelines bank regulators are primarily concerned with the protection of depositors such that bank capital can be regarded as a safety net that absorbs a certain level of unexpected losses without the interests of depositors being affected.
Tier 1
Tier 1 is a bank's core capital. The main components of Tier 1 are ordinary shareholders equity; retained earnings; perpetual (undated) non-cumulative preferred stock (Tier 1 Preferred); reserves created by appropriations of retained earnings, share premiums and other surpluses; and minority interests. The equity and rerves element of Tier 1 is often referred to as 'Core Tier 1'. The Tier 1 Preferred elements are often known as 'hybrid instruments' becuase they have a mix of both debt and equity features.
The main characteristics of Tier 1 instruments are:
there should be no contractual obligation to pay dividends or interest to Tier 1 holders with the deferral of a coupon usually being at the option of the issuer
deferred coupons or dividends are non-cumulative
Tier 1 should be able to absorb losses before, or instead of, general creditors
Tier 1 preferred must be perpetual but the FSA allows a limited step-up associated with a call after the tenth anniversary of the issue
Upper Tier 2
The main components of Upper Tier 2 are perpetual deferrable sub-ordinated debt (including debt convertible into equity); revaluation reserves from fixed assets and fixed asset investments; and general provisions.
The main characteristics of Upper Tier 2 debt are:
perpetual, senior to Tier 1 preferred and equity
coupons are deferrable and cumulative
interest and principal can be written down
Lower Tier 2
Lower Tier 2 capital is relativlely standard in form and cheap for banks to issue. The Basel Accord states that only 25% of a bank's total capital can be lower Tier 2.
--------------------------------------------------
Note added at 6 minutos (2010-09-23 08:04:03 GMT)
--------------------------------------------------
Sorry... me olvidé poner la referencia:
http://www.fixedincomeinvestments.org.uk/fixed-income-terms-...
A bank's capital is made up of share capital, reserves and a series of dated and hybrid capital instruments, which are divided, based on their charatceristics, into categories referred to as Lower Tier 2, Upper Tier 2 and Tier 1. Capital in the form of debt instruments is always sub-ordinated becuase senior debt does not count as bank capital. This debt has to comply with regulatory guidelines concerning its characteristics in order to count as capital. In setting these guidelines bank regulators are primarily concerned with the protection of depositors such that bank capital can be regarded as a safety net that absorbs a certain level of unexpected losses without the interests of depositors being affected.
Tier 1
Tier 1 is a bank's core capital. The main components of Tier 1 are ordinary shareholders equity; retained earnings; perpetual (undated) non-cumulative preferred stock (Tier 1 Preferred); reserves created by appropriations of retained earnings, share premiums and other surpluses; and minority interests. The equity and rerves element of Tier 1 is often referred to as 'Core Tier 1'. The Tier 1 Preferred elements are often known as 'hybrid instruments' becuase they have a mix of both debt and equity features.
The main characteristics of Tier 1 instruments are:
there should be no contractual obligation to pay dividends or interest to Tier 1 holders with the deferral of a coupon usually being at the option of the issuer
deferred coupons or dividends are non-cumulative
Tier 1 should be able to absorb losses before, or instead of, general creditors
Tier 1 preferred must be perpetual but the FSA allows a limited step-up associated with a call after the tenth anniversary of the issue
Upper Tier 2
The main components of Upper Tier 2 are perpetual deferrable sub-ordinated debt (including debt convertible into equity); revaluation reserves from fixed assets and fixed asset investments; and general provisions.
The main characteristics of Upper Tier 2 debt are:
perpetual, senior to Tier 1 preferred and equity
coupons are deferrable and cumulative
interest and principal can be written down
Lower Tier 2
Lower Tier 2 capital is relativlely standard in form and cheap for banks to issue. The Basel Accord states that only 25% of a bank's total capital can be lower Tier 2.
--------------------------------------------------
Note added at 6 minutos (2010-09-23 08:04:03 GMT)
--------------------------------------------------
Sorry... me olvidé poner la referencia:
http://www.fixedincomeinvestments.org.uk/fixed-income-terms-...
4 KudoZ points awarded for this answer.
Comment: "Gracias"
Something went wrong...