| 单词 | capital adequacy |
| 释义 | capital adequacy Possession by a firm of sufficient capital for the business it is doing. This matters to the firm itself: if it is under-capitalized, a small adverse shift in cirumstances can impair its solvency. Capital adequacy therefore matters to a firm's creditors. In the case of banks and other financial institutions, it also matters to the regulatory authorities, who fear that the failure of particular firms might cause a general financial panic. How much capital is adequate depends on the risks a firm is taking. |
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