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Capital Requirements (Regulatory Capital)

The standardized requirements in place for banks and other depository institutions, which determines how much liquidity is required to be held for a certain level of assets through regulatory agencies. Put in place to ensure that these institutions are not participating or holding investments that increase the risk of default and that they have enough capital to sustain operating losses while still honoring withdrawals. 

Wikipedia: https://en.wikipedia.org/wiki/Capital_requirement 


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