What is Capital and Regulatory Capital?

In business terms, capital typically refers to the financial resources a company utilizes to fund its operations. Financial resources are however, not limited to only cash. Rather, it refers to the assets held on an entity’s balance sheet and include cash, cash equivalents, property, and buildings among other assets. Capital is used by companies in their continued production of goods and services to generate wealth for the company. Therefore, when one speaks of raising capital, this refers to a company issuing debt or equity in exchange for cash that would be channelled into production of its goods and/or services.

Capital Requirements for Market Intermediaries