Which position below is NOT a component of common equity Tier 1 capital?
A) innovative hybrid capital instruments with incentives to redeem
B) common shares issued by bank
C) retained earnings
D) stock surplus (share premium)

Question

Quizplus · Accepted Answer

Innovative hybrid capital instruments with incentives to redeem are not components of common equity Tier 1 capital. The other choices listed (common shares, retained earnings, and stock surplus) are all components of common equity Tier 1 capital.

Which Position Below Is NOT a Component of Common Equity