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COREP Guidance COREP Terms & Definitions CONTACT US What are Own Funds?

What are Own Funds?

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Regulators aim to ensure that financial institutions, banks and investment firms have enough capital  or ‘own funds’ to ensure their businesses remain stable and ensure that they are able to absorb losses in a going or in a gone concern situation.

As such, institutions need own funds in sufficient quantity and quality in accordance with applicable European legislation. This is referred to as Capital Adequacy.