BROWSE

Impaired Capital

What is 'Impaired Capital'

1. When a bank's actual assets are worth less than their stated value. When a bank has impaired capital, this capital can be liquidated if the bank cannot make up the deficiency. State laws define the treatment of a bank with impaired capital.


2. When a company's actual assets are worth less than the stated value of the company's outstanding shares.

Explaining 'Impaired Capital'

In the case of a bank with impaired capital, one option for making up the deficiency is that the bank's board of directors can choose to levy and collect pro rata assessments on common stock to restore the impaired capital. If stockholders do not pay the assessments within a specified time frame, usually three to four weeks, the bank's board of directors can choose to sell enough of the stockholder's shares to collect the assessment.


Further Reading


The impact of bank ownership concentration on impaired loans and capital adequacy
www.sciencedirect.com [PDF]
… 1. Introduction. How does concentrated ownership affect bank riskiness? The corporate finance literature comes up with different answers to this question … In contrast to Caprio et al. (2007), we focus on impaired loans and capital adequacy instead of the value of the bank …

Financial policies, investment, and the financial crisis: Impaired credit channel or diminished demand for capital?Financial policies, investment, and the financial crisis: Impaired credit channel or diminished demand for capital?
papers.ssrn.com [PDF]
… 1. Introduction. How does concentrated ownership affect bank riskiness? The corporate finance literature comes up with different answers to this question … In contrast to Caprio et al. (2007), we focus on impaired loans and capital adequacy instead of the value of the bank …

Impaired capital reallocation and productivityImpaired capital reallocation and productivity
www.cambridge.org [PDF]
… 1. Introduction. How does concentrated ownership affect bank riskiness? The corporate finance literature comes up with different answers to this question … In contrast to Caprio et al. (2007), we focus on impaired loans and capital adequacy instead of the value of the bank …

The economic consequences of relaxing fair value accounting and impairment rules on banks during the financial crisis of 2008-2009The economic consequences of relaxing fair value accounting and impairment rules on banks during the financial crisis of 2008-2009
papers.ssrn.com [PDF]
… 1. Introduction. How does concentrated ownership affect bank riskiness? The corporate finance literature comes up with different answers to this question … In contrast to Caprio et al. (2007), we focus on impaired loans and capital adequacy instead of the value of the bank …

Cross‐border financial surveillance: a network perspectiveCross‐border financial surveillance: a network perspective
www.emerald.com [PDF]
… 1. Introduction. How does concentrated ownership affect bank riskiness? The corporate finance literature comes up with different answers to this question … In contrast to Caprio et al. (2007), we focus on impaired loans and capital adequacy instead of the value of the bank …

Impaired financing determinants of Islamic banks in MalaysiaImpaired financing determinants of Islamic banks in Malaysia
ojs.amhinternational.com [PDF]
… 1. Introduction. How does concentrated ownership affect bank riskiness? The corporate finance literature comes up with different answers to this question … In contrast to Caprio et al. (2007), we focus on impaired loans and capital adequacy instead of the value of the bank …

Does the lack of financial stability impair the transmission of monetary policy?Does the lack of financial stability impair the transmission of monetary policy?
www.sciencedirect.com [PDF]
… 1. Introduction. How does concentrated ownership affect bank riskiness? The corporate finance literature comes up with different answers to this question … In contrast to Caprio et al. (2007), we focus on impaired loans and capital adequacy instead of the value of the bank …

Access to capital, investment, and the financial crisisAccess to capital, investment, and the financial crisis
www.sciencedirect.com [PDF]
… 1. Introduction. How does concentrated ownership affect bank riskiness? The corporate finance literature comes up with different answers to this question … In contrast to Caprio et al. (2007), we focus on impaired loans and capital adequacy instead of the value of the bank …

Trends in park tourism: Economics, finance and managementTrends in park tourism: Economics, finance and management
www.tandfonline.com [PDF]
… 1. Introduction. How does concentrated ownership affect bank riskiness? The corporate finance literature comes up with different answers to this question … In contrast to Caprio et al. (2007), we focus on impaired loans and capital adequacy instead of the value of the bank …


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