Capital requirement (资本要求)

Capital requirement (资本要求 zī běn yāo qiú) refers to the least amount of money a bank and other depository institution are required to have. It is set by regulators in order to protect investors and ensure the solvency of the bank since it ensures the bank sustains unexpected operating losses while still honoring withdraws. See “capital” (资本 zī běn).

Part 1: Breakdown of Words

• “Requirement” (要求 yāo qiú) as in technical requirement (技术要求 jìshù yāoqiú).
  • “要” (yāo) as in “necessary” (必要 bì yào), “threaten” (要挟 yāo xié), or “important” (重要 zhòng yào). 
  • “求” (qiú) as in “beseech” (恳求 kěn qiú), “request” (请求 qǐng qiú), or “propose marriage” (求婚 qiú hūn). 
• “Capital” (资本 zī běn) as in the capital market (资本市场 zīběn shìchǎng).
  • “资” (zī) as in “assets” (资产 zī chǎn), “investment” (投资 tóu zī), or “funds” (资金 zī jīn).
  • “本” (běn) as in “fundamental” (根本 gēn běn), “instinct” (本能 běn néng), or “skill” (本领 běn lǐng).

Part 2: Examples

1. Capital Requirement Regulations (资本要求条例 zī běn yāo qiú tiáo lì).