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capital adequacy

 
 
noun [U]

Definition

BANKING, FINANCE a measure of a bank's or other financial institution's ability to pay its debts if people or organizations are unable to pay back the money they have borrowed from the bank: capital adequacy requirements/rules/standards For the banks that remain open, minimum capital adequacy requirements have been doubled.
(Definition of capital adequacy noun from the Cambridge Business English Dictionary © Cambridge University Press)

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