equity reserves
[/ˈɛkwɪti rɪˈzɜrvz/]
nounpl: equity reserves
reservas de capital
1. Portions of a company's retained earnings or profits set aside and retained within the business for specific purposes, such as future investments, contingencies, or legal requirements, rather than being distributed as dividends
The company established equity reserves to fund expansion projects over the next five years.
A empresa constituiu reservas de capital para financiar projetos de expansão nos próximos cinco anos.
2. In accounting, funds accumulated from net profits that strengthen the company's equity position and financial stability
Strong equity reserves indicate that the company has sufficient financial cushion to weather economic downturns.
Reservas de capital fortes indicam que a empresa tem suficiente margem financeira para enfrentar crises econômicas.
3. Capital buffers maintained by companies to meet regulatory requirements and ensure solvency
Banks are required to maintain minimum equity reserves as stipulated by central banking regulations.
Os bancos são obrigados a manter reservas de capital mínimas conforme estipulado pelos regulamentos de bancos centrais.
In Brazil, equity reserves are closely regulated by the Central Bank (Banco Central do Brasil) and are essential for corporate governance. Companies typically disclose their equity reserve policies in annual reports (relatórios anuais). This concept is fundamental to Brazilian corporate finance and accounting practices, particularly in the banking and financial services sectors. In the USA, equity reserves are a standard component of corporate financial planning and are closely monitored by shareholders and regulatory bodies.
Related Idioms & Phrases
building reserves for a rainy day
tapping into equity reserves
strengthening equity reserves
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