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capital adequacy

Line breaks: cap|ital ad|equacy

Definition of capital adequacy in English:

noun

[mass noun]
The statutory minimum reserves of capital which a bank or other financial institution must have available.
Example sentences
  • 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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