capital reserve
1
6.7
- noun
- /ˈkæpɪtəl rɪˈzɜrv/
- UK
:
reserva de capital
- The problem was so large that banks, even with large capital reserves, ran out, so they had to turn to governments for a bailout.
- capital reserve account
This allows the card issuer to issue more accounts and to reduce its capital reserve requirements.
- This allows the card issuer to issue more accounts and to reduce its capital reserve requirements.
Examples
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A healthy capital reserve is vital for companies to manage sudden financial challenges without disrupting operations.
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Capital reserves are kept to cover future losses.
Blog text (21) -
This allows the card issuer to issue more accounts and to reduce its capital reserve requirements.
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Likewise, reducing interest rates sounds like there would be less incentive for people to save money when banks need to build up their capital reserves.
Blog text (25) -
The agency boosted premiums and took other steps in 2009 to shore up its capital reserves.
Blog text (29) -
India is much poorer than China, and New Delhi lacks Beijing's massive capital reserves.
Academic text (2009) -
The F.H.A., the Department of Housing and Urban Development unit that insures home mortgages, reports on its capital reserves at the end of each fiscal year and makes projections for its financial position in the coming year.
Blog text (21) -
The company set aside a substantial capital reserve to prepare for any unexpected expenses that may arise.
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To ensure stability during uncertain times, many businesses maintain a capital reserve for unforeseen costs.
Synonyms
3
4.1
Money set aside to pay for future costs or emergencies
1
4.3
A place a bank or company keeps money to pay future costs
Antonyms
Surface Forms
Morphology
The sense 'an amount of money set aside' is directly derivable from 'capital' (funds/assets) combined with 'reserve' (a quantity kept for emergencies), so a learner who knows both words can infer the MWE meaning. This noun+noun financial compound follows transparent compositional logic common across many languages, though it carries a technical financial nuance about distribution restrictions.
Etymology
Capital reserve comes from the simple idea of keeping part of a company's capital in a safe 'reserve', like putting money in a box for emergencies. That's why it means money the company keeps back for special or unexpected costs and not for paying 'dividends'.