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Capital requirements

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CAPITAL REQUIREMENTS
The permanent financing needed for the normal operation of a business; that is, to finance fixed assets and working capital. Also, the appraised investment in fixed assets plus the normal amount of working capital.
AVERAGE COST ...

 


CAPITAL REQUIREMENTS - Financing required for the operation of a business, composed of long-term and wo...
CAPITAL RESERVE - is a fund set aside for specific purposes, thereby cannot be distributed for other us...

capital requirements A financial institution's or trading organization's requirements to hold capital for the specific risks it takes.

Capital requirements
Financing required for the operation of a business, composed of long-term and working capital plus fixed assets.

An easing of capital requirements to Brazil's strong banking system, which will incentivize housing and car loans.
Export financing.
And huge local infrastructure projects.

Third, even if capital requirements are raised for banks, this will tend to push financial transactions (and the weight of balance sheet risk) towards the relatively unregulated shadow banking system.

Financial & Investment Dictionary:
Capital Requirements
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Basel Accord Agreement concluded among country representatives in 1988 in Switzerland to develop standardized risk-based capital requirements for banks across countries.

A captive bank is generally located in a tax haven in order to avail itself of the low capital requirements and freedom from exchange control.

The overestimation of regulators of the ability of the financial firms to manage situations of financial distresses, and the corresponding underestimation of minimum capital requirements, ...

Measures the cash generated from operations, not counting capital spending or working capital requirements. Operating cycle The average time between the acquisition of materials or services and the final cash realization from that acquisition.

The amount of money raised varies with revenues, making it a good way to fund working capital requirements.
Non-recourse factoring reduces working capital requirements, as it allows immediate realisation of debtors, shortening the cash cycle.

Firms such as banks working in the financial sector have capital requirements imposed upon them by the Regulator, to ensure they remain solvent.

Value-at-risk models are used to calculate capital requirements for compliance with the Basel rules that regulate risks in international banking.

In the words of the UK’s Financial Services Authority (FSA), the directive “aims to establish a revised set of EU-wide capital requirements,...
China and the Global Financial Crisis
by Linda Yueh ...

Often used by banks seeking to meet regulatory capital requirements without issuing common stock until a later date. Often called equity-linked securities.

(1) In determining whether assets meet capital requirements, a percentage reduction in the stated value of assets. (2) In computing the worth of assets deposited as collateral or margin, a reduction from market value.
Hardening ...

A set of international banking regulations put forth by the Basel Committee on Bank Supervision, which set out the minimum capital requirements of financial institutions with the goal of minimizing credit risk.

The NASD requires member brokers to register and conducts examinations for compliance with net capital requirements and other regulations. It also conducts market surveillance of the over-the-counter (OTC) securities market.

excess of the value of an insurer's admitted assets over the total value of its liabilities and minimum capital requirements established by applicable statutes designed to assure the insurer's solvency.
Dictionary of Business Terms
paid-in surplus ...

The first can be referred to as the social surplus and capital surplus respectively, and the second social costs and capital requirements. One of the most important social costs is war.

Using the Accounts Receivable Turnover Ratio, you quickly learn how credit sales affect the working capital requirements of the business, as well as how good the company is at collecting out it's debt ...

The NAIC also requires states to establish risk-based capital requirements and to institute the NAIC financial reporting requirements. Further, CPA audits and actuarial opinions are required for financial statements issued by insurers.

The BIS definition of core equity capital available to meet regulatory capital requirements being the sum of common shareholders' equity common shares, contributed surplus, retained earnings, ...

General clearing member (adhérent compensateur général) "ACG" - A ACG can perform the same functions as an ACI. However ACG is subject to higher capital requirements, ...

Venture capitlist's first contribution toward the financing or capital requirements of a start-up business.
Selling Short ...

Operating cash flow
Earnings before depreciation minus taxes. It measures the cash generated from operations, not counting capital spending or working capital requirements.
Net operating margin
The ratio of net operating income to net sales.

Earnings before depreciation minus taxes. It measures the cash generated from
operations, not counting capital spending or working capital requirements.
Preferred stock agreement
A contract for preferred stock.

RULE 15c3-1 " The SEC rule which establishes minimum net capital requirements for brokers/dealers.

Solvency II is a fundamental review of the capital adequacy regime for the European insurance industry. It aims to establish a revised set of EU-wide capital requirements and risk management standards that will replace the current solvency ...

net earnings minus standard risk/costs is related to necessary or allocated risk capital. Risk capital requirements arise separately from the credit, market and operative risks associated with the respective business operation.

Progress payments
Definition: [crh] Periodic payments to a supplier, contractor, or subcontractor for work as it is completed as desired, in order to reduce working capital requirements.

A key feature is that capital requirements mean that public utilities tend to be natural monopolies. One firm can generally provide the services at a lower average cost that two or more firms.

sustainable growth rate
Return on equity multiplied by one minus the average payout ratio. Used as a measure of a firm's ability to finance its long-term capital requirements internally.
T ...

offshore insurance markets, onshore insurance companies can also establish an offshore subsidiary in the jurisdiction to reinsure certain risks underwritten by the onshore parent, and thereby reduce overall reserve and capital requirements.

a NASD-member firm who is responsible for the financial reports of the firm, keeping of books and records, supervision of back office operations, and compliance with financial responsibility rules, including compliance with net capital requirements.

Two attractive features of these instruments is that the securitization process lowers the regulatory capital requirements for the originating then holding investor. Secondly, the securitization tends to improve the liquidity of the asset.

Investment dealers and sales staff involved in the investment business must be registered with the applicable self-regulatory organization. Before registration is allowed, basic standards must be met, such as minimum capital requirements for a firm ...

The separate license may be due to lower capital requirements, to limitations on financial service offerings, or to supervision under a different state agency.

Included are guidelines for minimum capital requirements. The agreement was reached by the Committee on Banking Regulations and Supervisory Practices (also known as the Cooke Committee after its chairman, Peter Cooke), ...

See also: Expense, Net sales, Banks, Prepayment, Bills

Business Capital rationingCapital resource

 
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