Risk-Based Capital Requirement
A stated requirement of liquid reserves placed upon banks and institutions that deal in risky ventures.

Investopedia Says:
These requirements exist for the protection of investors who hold an interest in these types of businesses. Governing bodies place reserve requirements upon these institutions based on the premise that stakeholders will still receive limited payment should insolvency occur.

Related Terms:
Insolvency
Liquidity
Liquidity Cushion
Required Reserves
Securities and Exchange Commission - SEC

• Contract For Differences (CFD)
• Contract Holder
• Contraction
• Contraction Risk
• Contract Market
• Contract Size
• Contract Unit
• Contrarian
• Contributed Surplus
• Contribution Margin
• Contributory Value
• Controller
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• Control Stock
• Convenience Yield
• Conventional Mortgage
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• Convertible Adjustable Preferred Stock (CAPS)
• Convertible Adjustable Preferred Stock (CAPS)