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Concept information

Preferred term

capital adequacy  

Definition

  • Capital adequacy is a measure of a financial institution's ability to absorb potential losses resulting from various risks to which it is exposed. Financial institutions are required to maintain a certain minimum amount of capital in order to ensure their soundness and the stability of the financial system as a whole. [Source: Encyclopedia of Business in Today's World; Capital Adequacy]

Broader concept

Belongs to group

URI

http://data.loterre.fr/ark:/67375/N9J-VSWVZL09-G

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