Definition of capital adequacy in English:

capital adequacy


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

    • ‘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.’
    • ‘The capital adequacy of the bank stood at 16.25 per cent, asset coverage was 15.91 per cent.’
    • ‘The report notes that Bulgaria needs to align to the EU legislation on capital adequacy, e-money and financial conglomerates.’
    • ‘Firms must improve their capital adequacy - in layman's terms, they have to keep more cash in the bank.’