Bank Capital

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Dictionary Says

Definition of 'Bank Capital'

The difference between the value of a bank's assets and its liabilities. The bank capital represents the net worth of the bank or its value to investors. The asset portion of a bank’s capital includes cash, government securities and interest-earning loans like mortgages, letters of credit and inter-bank loans. The liabilities section of a bank's capital includes loan-loss reserves and any debt it owes.  
Investopedia Says

Investopedia explains 'Bank Capital'

A bank's capital can be thought of as the margin to which creditors are covered if a bank liquidates its assets. Loan-loss reserves or loan-loss provisions, are amounts set aside by banks to allow for any loss in the value of the loans they have offered.
Search results for

'Bank Capital'

  • Is Your Bank On Its Way Down?

    http://www.investopedia.com/articles/fundamental-analysis/09/tier-1-capital-ratio.asp
    ... Final Considerations The Tier 1 capital ratio is one of the most prominent risk
    measures to determine bank capital adequacy, but should be used in conjunction ...

  • How Basel 1 Affected Banks

    http://www.investopedia.com/articles/07/BaselCapitalAccord.asp
    ... international banks. The basic achievement of Basel I has been to define
    bank capital and the so-called bank capital ratio. In order ...

  • Using Economic Capital To Determine Risk

    http://www.investopedia.com/articles/economics/08/economic-capital.asp
    ... From a regulatory perspective, the minimum amount of capital is a part of a bank's
    eligible capital. ... The Bottom Line EC is a measure of a bank's risk capital. ...

  • How Will Bank Regulation Affect British Banks? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1011/How-Will-Bank-Regulation-Affect-British-Banks.aspx
    ... First, banks build up more capital in order to absorb losses. Second, a bank's
    investment banking and retail banking operations be kept separate. ...

  • Banks Battle Higher Capital Standards

    http://stocks.investopedia.com/stock-analysis/2011/Banks-Battle-Higher-Capital-Standards-JPM-BAC-C-AIG1018.aspx
    ... more than 50% in 2011 as investors speculate on whether the company will have to
    raise equity to meet the upcoming capital requirements. The bank is also ...

  • Basel II Accord To Guard Against Financial Shocks

    http://www.investopedia.com/articles/07/basel2.asp
    ... Many of the problems are inevitable: The agreement tries to coordinate bank
    capital requirements across countries and across bank sizes. ...

  • What Is The World Bank?

    http://www.investopedia.com/articles/03/042303.asp
    ... The balance of the 195 shares is left as "callable capital," meaning the World Bank
    reserves the right to ask for the monetary value of these shares when and ...

  • Analyzing A Bank's Financial Statements

    http://www.investopedia.com/articles/stocks/07/bankfinancials.asp
    ... An investor should be concerned that this bank is not reserving sufficient
    capital to cover its future loan and lease losses. It ...

  • How did currency trader John Rusnak hide $691 million in losses ...

    http://www.investopedia.com/ask/answers/09/john-rusnak.asp
    ... When the bank demanded that Rusnak release some of the capital to ease its balance
    sheet of the heavy skew towards the forex market, the house of cards came ...

  • Evaluating A Company's Capital Structure

    http://www.investopedia.com/articles/basics/06/capitalstructure.asp
    ... In contrast, bank debt is usually subject to acceleration clauses and/or covenants
    that ... A healthy capital structure that reflects a low level of debt and a ...

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