Entry from British & World English dictionary
Definition of capital adequacy in English:
The statutory minimum reserves of capital which a bank or other financial institution must have available.
- Firms must improve their capital adequacy - in layman's terms, they have to keep more cash in the bank.
- It should be a first-class bank with solvency and liquidity corresponding to the Bulgarian National Bank's criteria for capital adequacy, and enjoy the trust of the general public.
- It has also set a September 30 deadline to complete a shareholding restructuring, and must boost its capital adequacy to 8 per cent by year-end to qualify for the share sale.
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