Economic capital definition

2020-04-06 18:41

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.

What is economic capital? An insurers available economic capital is the excess of the realizable value of the companys assets over the fulfillment cost of its liabilities An insurers required economic capital is the amount of capital that a company needs to provide a reasonable level of security to Apr 19, 2019 Economic capital is the amount of capital that a firm (usually in financial services) needs to ensure that the company stays solvent given its risk profile. Economic capital is calculated internally, sometimes using proprietary models, and is the amount of capital that the firm should have to support any risks that it takes. Next Up.economic capital definition Mar 25, 2012  What is cultural capital? The Forms of Capital (1986) written by Bourdieu addressed the new concepts cultural capital and social capital. In Bourdieu's point of view, cultural capital is something that one acquires for equipping oneself and is reproduced by economic capital. This definition sounds abstract. Yet, think about it, what things help to equip yourself as a