Tier 2 Capital A term used to describe the capital adequacy of a bank. Tier II capital is secondary bank capital that includes items such as undisclosed reserves, general loss reserves, subordinated term debt, and more. Investopedia Says: This is related to Tier 1 Capital. Related Terms: Basel Accord Basel I Capital Adequacy Ratio - CAR Capital Requirement Tier 1 Capital Undisclosed Reserves |