Capital requirement (also known as regulatory capital or... - dofaq.co
capital requirement

Capital requirement (also known as regulatory capital or...

wikipedia - 18 Aug 2015
Capital requirement (also known as regulatory capital or capital adequacy) is the amount of capital a bank or other financial institution has to hold as required by its financial regulator. This is usually expressed as a capital adequacy ratio of equity that must be held as a percentage of risk-weighted assets. These requirements are put into place to ensure that these institutions do not take on excess leverage and become insolvent. Capital requirements govern the ratio of equity to de

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