Meaning of “capital adequacy” in the English Dictionary

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"capital adequacy" in Business English

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capital adequacynoun [ U ]

uk us

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)