CAPITAL ADEQUACY Definition

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CAPITAL ADEQUACY is a measure of the financial strength of a bank or securities firm, usually expressed as a ratio of its capital to its assets. For banks, there is now a worldwide capital adequacy standard, drawn up by the Basle Committee of the Bank for International Settlements. This ratio requires banks to have capital equal to 8 per cent of their assets.

 

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AGE OF INVENTORY see DAYS INVENTORY.

EMPLOYEE STOCK OWNERSHIP PLAN (ESOP) is an employee benefit to acquire ownership of shares in their company without necessarily laying out personal capital.

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