Capital Adequacy - a) An internationally-adopted
standard for the prudential supervision of banks,
under which minimum levels of shareholders' equity
(weighted according to the risks associated with different
kinds of activity) must be maintained to support the
investment and lending activities of banks. (See also
Risk Weighting); b) In relation to public offer funds,
a requirement under the SIS Legislation that the approved
trustee maintain a prescribed level of capital in
cases where the trustee intends to keep custody of
the fund's assets (or, alternatively, that the custodian
is appropriately capitalised in cases where an external
custodian is used).
