Capital reassures an institution's depositors, creditors, and counterparties that unanticipated losses or decreased earnings will not impair a financial institution's ability to repay its creditors or protect the savings of depositors. In general, capital represents the share of an institution's assets with no obligation for repayment, although this condition varies for less traditional forms of capital such as some hybrid instruments. Because capital generally does not have to be repaid, it can serve as a buffer against declines in asset values without subjecting an institution to default or insolvency.
| Author: Government Accountability Office |
| Publisher: Createspace Independent Publishing Platform |
| Publication Date: Sep 04, 2013 |
| Number of Pages: 88 pages |
| Binding: Paperback or Softback |
| ISBN-10: 1492288861 |
| ISBN-13: 9781492288862 |
