recapitalization
2
7.6
- noun
- /ˌriːˌkæpɪtəlaɪˈzeɪʃən/
- Specialized
- These hemorrhaging businesses must be bailed out by loans from state banks that then become insolvent themselves, requiring recapitalization and extending the economic crisis down the line.
- banking recapitalization
- leveraged recapitalization
- recapitalization plan
Examples
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The bank's successful recapitalization allowed it to recover from financial losses and improve stability.
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The banks are being kept afloat with the interest being paid on the recapitalization bonds they received from the government in exchange for the loans that went into default in the 1997-98 crisis.
Academic text (2004) -
80 billion to be used for the recapitalization of German banks.
Blog text (14) -
I will go ahead and say that these programs basically amount to a stealth recapitalization of the banks.
Blog text (20) -
It is different from the recapitalization of banks that is going on.
Blog text (23) -
So it is clear that the main prong of any "rescue" plan must serve to advance the recapitalization.
Blog text (32) -
A far better alternative would be for the Fed to issue recapitalization bonds to the TSY (or the market) and use the proceeds to recapitalize the banks.
Blog text (10) -
To plug the shortfall, the FT wrote that Greece may seek to use funds from a 3bn reserve for bank recapitalization held by the Hellenic Financial Stability Fund.
Blog text (31) -
The increase in the ratio of capital adequacy of (CAP) banks from 12.47%, 13%, and 14.28% emphasizes efforts to strengthen solvency and recapitalization.
Academic text (2016) -
Germany created a 480 billion-euro bank rescue fund in October, comprising 400 billion euros in guarantees and as much as 80 billion euros in recapitalization steps, both of which will need to be financed in some form or other through the bond market.
Blog text (3)
Antonyms
How Restructured
Surface Forms
Morphology
recapitalization = capitalization (semi-transparent) = re + capital + ization
The structure re- + capitalization is clear, but capitalization here is a specialized financial term rather than an everyday meaning.
Etymology
Recapitalization is made of re- meaning 'again', capital meaning 'money or important resources', and -ization meaning 'a process'. So recapitalization is the process of giving new money or changing a company's mix of funds to make its finances stronger.