What is the overall limit on Tier 2 Capital? Tier 2 Capital is limited to: A. 150% of Tier 1 Capital. B. 75% of Tier 1 Capital. C. 50% of Tier 1 Capital. D. 100% of Tier 1 Capital.
Tier 2 capital is limited to 100% of Tier 1 Capital. There is no limit on Tier 1 capital. Basel II recommends that the combined total of Tier 3 capital and Tier 2 capital does not exceed Tier 1 capital.
