Undercapitalized


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Undercapitalized

A business has insufficient capital to carry out its normal functions.

Undercapitalized

Describing a company that has insufficient capital to maintain operations without outside assistance. Undercapitalized companies often rely on short-term loans for funding, though they may issue stock or bonds at some point to raise capital.

undercapitalized

Of, relating to, or being a firm that has insufficient long-term equity to support its assets. A rapidly growing company that finds itself financing its operations primarily with short-term loans may be undercapitalized.
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References in periodicals archive ?
So the effect that has on our credit union is we go from well capitalized, which we've been at for years, to now undercapitalized overnight, so of course we feel that it's an outrageous level of capital to be requiring of credit unions that have these concentrations," Holbrook said.
The bank increased its earnings to $39,000 in the third quarter from $10,000 in the second quarter, it remained significantly undercapitalized on Sept.
12 "prompt corrective action directive" that labeled the bank "significantly undercapitalized.
Lending through either of these channels is governed by the FDICIA, which imposes limits on the number of days that the Federal Reserve is permitted to provide funds to undercapitalized banks.
Section 142 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) limits--but does not prohibit--Federal Reserve lending to undercapitalized or critically undercapitalized banks.
e) Undercapitalized insured depository instution means any insured depository institution as defined in section 3 of the FDI Act (12 U.
To read about Earl Graves of Black Enterprise, Byron Lewis of Uniworld Group or Edward Lewis of Essence as struggling, undercapitalized business owners is a testament to what they have built.
Banks may become temporarily undercapitalized as they accelerate the disposal of bad loans, although major banks ''are unlikely to fall into capital shortages immediately,'' Hayamai said at a regular news conference.
Consider it a return on investment for an undercapitalized sector.
That threw the undercapitalized domestic banks into a crisis from which they never emerged.
Julius Maldutis, an analyst for the Canadian Imperial Bank of Commerce, agrees that the carriers are undercapitalized.
Think of Loh as a sort of Dorothy Parker of the clued-in but terminally undercapitalized.