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1) n. from Latin for caput, meaning "head," the basic assets of a business (particularly corporations or partnerships) or of an individual, including actual funds, equipment and property as distinguished from stock in trade, inventory, payroll, maintenance and services. 2) adj. related to the basic assets or activities of a business or individual, such as capital account, capital assets, capital expenditure, and capital gain or loss. 3) n. an amount of money a person owns, as in "how much capital do you have to put into this investment?" as distinguished from the amount which must be financed. (See: capital account, capital assets, capital gains or losses, stock in trade)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.

CAPITAL, political economy, commerce. In political economy, it is that portion of the produce of a country, which may be made directly available either to support the human species or to the facilitating of production.
     2. In commerce, as applied to individuals, it is those objects, whether consisting of money or other property, which a merchant, trader, or other person adventures in an undertaking, or which he contributes to the common stock of a partnership. 2 Bouv. Inst. n. 1458.
     3. It signifies money put out at interest.
     4. The fund of a trading company or corporation is also called capital, but in this sense the word stock is generally added to it; thus we say the capital stock of the Bank of North America.

A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856.
References in periodicals archive ?
The two-stage least squares (2SLS) estimator with bank capital as an endogenous regressor for bank lending is appropriate in the presence of omitted variables bias.
This paper assumes ex post inefficiency in order to show that soft budget constraints arise not from sunk costs but from bank capital regulation.
Within the regulatory framework, bank capital is an important line of defense for creditors and depositors, as well as for the deposit insurance fund.
The other bank specific variables like return on assets, size of the bank and liquidity have also the significant impact on the determination of bank capital buffer.
This is the fourth revision of directives 2006/48 and 2006/49 on bank capital requirements and it aims to implement the Basel III agreements
and European bank regulators are considering toughening bank capital adequacy rules in view of the current serious financial crisis.
Despite this evidence, the role of bank capital and capital requirements in the monetary transmission mechanism has received much less attention.
Neither McDonough nor the other officials involved in the new accord are under any misapprehension that a more sophisticated accord on bank capital standards is going to make the world safe from financial crises.
This potential for loss and bank capital depletion is another reason for urging that the new activities be conducted in a holding company affiliate rather than in a banking subsidiary.
Until now, risk-based bank capital rules required that a bank maintain at least eight percent of capital against the entirety of a commercial real estate loan pool, even if the bank had sold a senior interest in the loan pool and retained only a junior interest, with no ongoing credit support for the senior interest sold.
M2 EQUITYBITES-May 29, 2019--New Zealand Central bank appoints experts to review bank capital proposals
Global Banking News-May 29, 2019--New Zealand Central bank appoints experts to review bank capital proposals