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Capital Requirements

   Also found in: Wikipedia 0.07 sec.
Capital requirements
Financing required for the operation of a business, composed of long-term and working capital plus fixed assets.

Capital Requirements
In banking regulation, the amount of money a bank must have available to cover withdrawals, closed accounts, and other account-related expenses. While each jurisdiction computes capital requirements differently, Basel II provides a framework many countries follow; it describes capital requirements as a percentage of a bank's risk-weighted assets. Capital requirements are important for bank solvency, and, in difficult times, reduce the pressure for bank runs.


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The structure of capital requirements should also be reviewed," Bernanke said.
The structure of capital requirements should also be reviewed," Bernanke said.
In the Turner Review on the financial crisis, FSA chairman Lord Turner highlighted the need for tougher capital requirements.
 
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