* Treasury Functions:
* Management of Assets and Liabilities: Treasury functions include managing the bank's balance
* sheet, which involves optimizing the mix of assets and liabilities.
* Management of Liquidity: Ensuring the bank has sufficient liquidity to meet its obligations.
* Management of Capital: Overseeing the capital adequacy to meet regulatory requirements and support the bank's operations and growth.
* Performance Estimates:
* Estimating and managing the bank's performance involves various departments, not typically the treasury function. Performance estimates would be more related to financial planning and analysis functions.
ReferencesSource: How Finance Works

Under Basel II, Tier 1 capital, also known as core capital, includes:
* Equity Capital: This includes common stock and retained earnings. It is the highest quality of capital because it is fully available to cover losses.
* Accrued Profits to Reserves: Profits that are retained and not distributed as dividends are added to reserves, increasing the bank's capital base.
This combination of equity capital and retained earnings ensures that Tier 1 capital is robust and able to absorb significant losses, thereby providing a strong financial cushion.References: How Finance Works, sections on regulatory capital requirements and the components of Tier 1 capital.