What is Capital Adequacy?

Capital adequacy plays a vital role in the stability and functioning of the banking sector. It ensures that banks have enough capital to support their lending and trading activities. This, in turn, protects depositors and other creditors from potential losses. Understanding capital adequacy helps recognize how banks maintain their financial health and comply with regulatory…

What is a Capital Account?

A capital account is a financial record that tracks changes in a country’s, company’s, or partnership’s capital. It includes various economic activities, investments, and contributions. This account is essential in understanding how money flows and how wealth builds over time. Below are the critical aspects of a capital account in different contexts. National Economic Capital…