capital reserves
[/ˈkæpɪtəl rɪˈzɜrvz/]
nounpl: capital reserves
reservas de capital
1. Funds set aside by a company or financial institution from profits or retained earnings to meet future obligations, unexpected losses, or regulatory requirements
The bank maintained substantial capital reserves to ensure stability during economic downturns.
O banco mantinha reservas de capital substanciais para garantir estabilidade durante as crises econômicas.
2. Part of a company's equity that is legally restricted and cannot be distributed as dividends
The corporation allocated a portion of its profits to capital reserves as required by law.
A corporação alocou uma parte de seus lucros para reservas de capital conforme exigido por lei.
3. Financial buffers maintained by organizations to absorb potential losses and maintain solvency
Insurance companies are required to maintain adequate capital reserves to protect policyholders.
As companhias de seguros são obrigadas a manter reservas de capital adequadas para proteger os segurados.
Capital reserves are a critical concept in Brazilian and American finance, heavily regulated by central banks and financial regulatory authorities (Banco Central do Brasil and Federal Reserve, respectively). Companies must maintain minimum capital reserves as a percentage of their assets, a practice that became more stringent after the 2008 financial crisis under Basel III accords.
Related Idioms & Phrases
build up capital reserves
tap into capital reserves
maintain capital reserves
strengthen capital reserves
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