capital requirements



  • plural noun the amount of capital which a firm needs to operate normally
  • plural noun the amount of liquid assets needed by a bank to fulfil its obligations


  • (written as Capital Requirements)
    Also known as regulatory capital, this term refers to amounts of cash or other liquid assets that financial institutions are required to have on hand to back different asset types, based on the level of risk and total value of asset classes held by the institution. Capital requirements are typically higher for institutions offering foreign exchange services, due to the level of risk involved.