Banks are allowed three classes of capital (see section CA-2.1) to meet their capital requirements for credit, operational and market risk, as set out below:

Tier 1: Core capital — May be used to support credit, operational and market risk

Tier 2: Supplementary capital — May be used to support credit, operational and market risk; and

Tier 3: Ancillary capital — May be used solely to support market risk.