Undercapitalized Bank

An Undercapitalized Bank is a financial bank that is an undecapitalized organization.

• • …
• Counter-Example(s):
  • an Adequately Capitalized Bank.
  • an Undercapitalized Company.
• See: Banking Crisis, Bank Run.

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References

2014

• http://en.wikipedia.org/wiki/Undercapitalization#Banking_industry
  • In the banking industry, undercapitalization refers to having insufficient capital to cover foreseeable risks.

• http://dealbook.nytimes.com/2014/10/26/ecb-stress-test-finds-13-banks-fall-short/
  • The European Central Bank said that 13 banks in the eurozone — including four in Italy and two in Greece — showed shortfalls in their own money, or capital, after a review devised to uncover hidden problems and test their ability to withstand a sharp recession or other crisis. But no major European banks failed the central bank’s test.

2008

• http://www.stlouisfed.org/publications/cb/articles/?id=792
  • … Adequately capitalized institutions ... Undercapitalized institutions ... Significantly undercapitalized institutions ... Critically undercapitalized institutions ...

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