capital requirements
Capital requirements refer to the minimum amount of funds or financial resources that a bank, financial institution, or business entity is mandated to maintain by regulatory authorities. These requirements ensure that the institution has sufficient capital to absorb potential losses and meet its financial obligations, thereby promoting stability and financial soundness within the industry.
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Related Concepts (1)
Similar Concepts
- capital adequacy
- capital adequacy requirements
- capital appreciation
- capital budget requests
- capital budgeting
- capital controls
- capital expenditures
- capital flows
- capital infusion
- capital investment decisions
- capital markets
- capital structure
- capital structure decisions
- fundamental requirements
- reserve requirements