Term

 Definition 
                        


 Economic
 capital
       

The capital, which is set aside to cover the risks to which the organisation or part of it confidently believes it is exposed.

 
 Regulatory
 capital

The capital charge, which is based on the requirements of the supervisors to cover risks.


 Allocated
 capital

The capital an institution has allocated to a business unit according to some risk measure and/or other considerations of management.