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Impaired capital

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Impaired capital
When a company's total capital is less than the par value of all its capital stock.

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Some insurance companies withdrew from the market because of their inability to compete successfully, impaired capital positions or because of a decrease in the availability of reinsurance.
Impaired capital assets that will no longer be used by the government should be reported at the lower of carrying value or fair value.
The credit crunch experienced in New England over the past two years is an example of a severe regional economic shock that was magnified by the impaired capital position of most New England depository institutions.
 
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