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 ?
Presumably poll respondents who opt not to verify franchisee assets don't recognize the significant risk an undercapitalized franchisee brings to a brand.
"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.
TOKYO - The Financial Services Agency (FSA) is considering a bill that would allow the government to inject public funds into undercapitalized financial institutions in a bid to ensure the financial health of regional lenders, FSA sources said Monday.
(b) Critically undercapitalized insured depository institution means any insured depository institution as defined in section 3 of the FDI Act (12 U.S.C.
Undercapitalized 3 0.5 1 0.1 SAIF Assessment Base Distribution, December 31, 2001 (b) (Number of members and total assessable deposits in billions of dollars) Supervisory Risk Subgroup A B Capital group Members Deposits Members Deposits 1.
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.
You've been historically undercapitalized. Before September 11, the frame of the economy of the dance community was a great concern.
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.