Term:
Regulatory capital
Definition:
Refers to a specific definition of capital developed by the BCBS and used as the numerator in the BCBS’s capital adequacy ratio. The definition includes, beyond the traditional capital and reserve account items, several specified types of subordinated debt instruments that need not be repaid if the funds are needed to maintain minimum capital levels.
Domain:
Finance
Source:
IMF, 2004, Compilation Guide on Financial Soundness Indicators, IMF, Washington DC, Appendix VII, Glossary