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Finance & Banking vocabulary · Corporate Finance

Capital

Meaning in finance & banking, with examples

/ˈkæpɪtəl/nounCore term

In finance & banking, capital means: Money and other financial resources used to start and run a business; for banks, the owners' funds that absorb losses and protect depositors.

In Turkish: sermaye, özkaynak

How it is used

Used in corporate finance and banking regulation. Companies raise capital; banks must hold enough capital and report capital ratios. Common phrases: share capital, venture capital, capital expenditure (capex) and capital markets.

Example sentences

  1. The company plans to raise new capital to fund its expansion.

  2. After the loan losses, the regulator asked the bank to strengthen its capital.

Common collocations

  • raise capital
  • share capital
  • capital increase
  • capital expenditure
  • capital markets
  • equityThe owners' share of a company: what is left when liabilities are taken away from assets. It includes paid-in capital and retained profits.
  • working capitalThe money a business has available for its daily operations, calculated as current assets minus current liabilities.
  • capital adequacy ratioA bank's capital divided by its risk-weighted assets. It shows whether the bank has enough capital to absorb losses; Basel rules require at least 8% before extra buffers.
  • cash flowThe movement of money into and out of a business over a period. Positive cash flow means more money is coming in than going out.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Corporate Finance

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This page explains English vocabulary for learners. It is not financial advice.