C
   
   Capital Requirements
   















 

C

Capital Requirements

Equity or subordinated debt funding of a financial intermediary required by regulators to assure the stability and soundness of the institution. After a long period of relaxing capital requirements, recent trends have been in the direction of increasing capital and adjusting requirements to reflect the relative riskiness of an institution's assets and liabilities.

Find out what financial institutions have to set aside as regulatory capital in "Key Risk Concepts: Capital Adequacy."

Glossary * C