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TeachMeFinance.com - explain tangible net worth tangible net worth -- same as tangible capital. See tangible capital. tangible capital -- OTS defines a thrift institution's tangible capital as outstanding stock plus retained earnings. In 1989, OTS set the minimum tangible capital requirement for savings institutions at 1.5 percent of assets. See core capital and risk-based capital. core capital -- one of three capital standards established for savings institutions in 1989. The minimum amount of core capital for the soundest institutions is 3 percent of assets. See tangible capital, risk-based capital. risk-based capital -- one of three capital standards adopted for savings institutions in 1989. The standard is designed to require savings institutions to hold more capital for higher-risk assets. The value of each asset is weighted according to its risk and then capital is calculated at a fixed percent of each risk-weighted asset. The standard adopted in 1989 was 8 percent of risk-weighted assets. See tangible capital and core capital.
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