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English definition of “capital adequacy”

capital adequacy

noun [U]
 
 
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 from the Cambridge Business English Dictionary © Cambridge University Press)
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