Economic capital definition
Mar 17, 2017 The definition of capital as used generally. How this meaning changes to some degree in the contexts of finance, accounting and economics.Capital (economics) Capital goods, real capital, or capital assets are alreadyproduced, durable goods or any nonfinancial asset that is used in production of goods or services. Capital is distinct from land (or nonrenewable resources) in that capital can be increased by human labor. economic capital definition
In finance, mainly for financial services firms, economic capital is the amount of risk capital, assessed on a realistic basis, which a firm requires to cover the risks that it is running or collecting as a going concern, such as market risk, credit risk, legal risk, and operational risk.