Investment Glossary · Quick read · No ads
Economic Capital
The short answer
The amount of capital a financial institution estimates it needs to absorb unexpected losses at a chosen confidence level.
What is Economic Capital?
The amount of capital a financial institution estimates it needs to absorb unexpected losses at a chosen confidence level.
About this page. Written by Associate Professor Charles Lo, CPA, PhD. Checked against reliable sources before publication. No ads and no paywall. Editorial standards · How we fact check · Corrections log · Report an error
Educational information only. Nothing on this page is personal financial, tax or legal advice. Investing involves risk, including the possible loss of principal.
