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English definition of “capital requirement”

capital requirement

noun [C]
 
 
FINANCE an amount of money that a company needs in order to operate: A high capital requirement is often a barrier to entry to a market.
BANKING, FINANCE an amount of money that a bank or other financial organization must have available in relation to the amount that it has lent: Some Savings and Loan Associations were closed because they were unable to meet the new capital requirements.
(Definition of capital requirement from the Cambridge Business English Dictionary © Cambridge University Press)
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