Task: Instance Description Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes the instance 'tier 2 capital'?

A. bank's equity capital and disclosed reserves, used to measure the bank's capital adequacy, consisting of common equity capital (CET1) and additional capital instruments (AT1)
B. supplementary loss-absorbing capital capacity that is considered less secure than Tier 1 capital
C. core capital held in an institution's reserves, used to fund business activities for clients
D. additional subordinated debt instruments that can absorb losses

Answer: supplementary loss-absorbing capital capacity that is considered less secure than Tier 1 capital