DODD-Frank Act: Hybrid Capital Instruments and Small Institutional Access to Capital |
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| Author:
| Government Accountability Office, |
| ISBN: | 978-1-4922-8886-2 |
| Publication Date: | Sep 2013 |
| Publisher: | CreateSpace Independent Publishing Platform
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| Book Format: | Paperback |
| List Price: | USD $15.99 |
Book Description:
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Capital reassures an institution's depositors, creditors, and counterparties that unanticipated losses or decreased earnings will not impair a financial institution's ability to repay its creditors or protect the savings of depositors. In general, capital represents the share of an institution's assets with no obligation for repayment, although this condition varies for less traditional forms of capital such as some hybrid instruments. Because capital generally does not have to be...
More DescriptionCapital reassures an institution's depositors, creditors, and counterparties that unanticipated losses or decreased earnings will not impair a financial institution's ability to repay its creditors or protect the savings of depositors. In general, capital represents the share of an institution's assets with no obligation for repayment, although this condition varies for less traditional forms of capital such as some hybrid instruments. Because capital generally does not have to be repaid, it can serve as a buffer against declines in asset values without subjecting an institution to default or insolvency.