Search results
Results From The WOW.Com Content Network
Minimum capital is a concept used in corporate law and banking regulation to stipulate what assets the organisation must hold as a minimum requirement. The purpose of minimum capital in corporate law is to ensure that in the event of insolvency or financial instability, the corporation has a sufficient equity base to satisfy the claims of creditors.
A capital requirement (also known as regulatory capital, capital adequacy or capital base) is the amount of capital a bank or other financial institution has to have as required by its financial regulator. This is usually expressed as a capital adequacy ratio of equity as a percentage of risk-weighted assets.
Main page; Contents; Current events; Random article; About Wikipedia; Contact us; Donate
Directive 2010/76/EU was to be implemented in two phases. The first, which affects the remuneration provisions, as well as a number of other ones dealing with the extension of some pre-existing minimum capital requirements, had to be implemented by 1 January 2011. The remaining provisions had to be implemented by 31 December 2011.
Published in 2004, Basel II was a new capital framework to supersede the Basel I framework. It introduced "three pillars": [1] Minimum capital requirements, which sought to develop and expand the standardised rules set out in the 1988 Accord; Supervisory review of an institution's capital adequacy and internal assessment process;
Removal of minimum paid-up share capital [Section 2(68) and Section 2(71)]: The private and public companies can now be set up without having to arrange for any minimum capital. [ 5 ] Making common seal optional [Section 9, 12, 22, 46 and 223]: The Amendment Act dispenses the mandatory requirement for every company to have a common seal on ...
Thus the actual capital requirement is between 11 and 13.5% (including Capital Conservation Buffer and Counter Cyclical Buffer). [ 14 ] In response to a questionnaire released by the Financial Stability Institute (FSI), 95 national regulators indicated they were to implement Basel II, in some form or another, by 2015.
The SCR is the capital required to ensure that the (re)insurance company will be able to meet its obligations over the next 12 months with a probability of at least 99.5%. In addition to the SCR capital a Minimum capital requirement (MCR) must be calculated which represents the threshold below which the national supervisor (regulator) would ...