Bank capital refers to the financial resources that banks must hold as a buffer against potential losses, ensuring stability and confidence in the financial system. It acts as a cushion for absorbing losses and is critical for maintaining the solvency and operational integrity of banks, especially during economic downturns.

Bank Capital

Bank capital

Financial resources refer to the funds and financial instruments available to an individual, organization, or government for spending and investment. They are crucial for operational activities, strategic planning, and achieving long-term goals, and can include cash, credit, and other financial assets.

financial resources

buffer against potential losses

stability and confidence

cushion for absorbing losses

Solvency is the ability of a company or individual to meet long-term financial obligations and continue operations in the foreseeable future. It is a critical measure of financial health, reflecting whether assets exceed liabilities over time.

solvency

Operational integrity refers to the adherence of an organization's operations to its established standards, ensuring safety, reliability, and efficiency. It involves the integration of processes, systems, and people to maintain seamless and consistent performance while mitigating risks.

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