Capital requirement

Capital requirements are rules set by governments, banks and other financial organizations to make sure that companies and banks have enough money to pay their debts. This helps to make sure that money is safe and that people can trust those organizations to keep their money safe. Companies need to have enough money in their account to cover any debts they owe while banks need to have a certain amount of money in reserve to protect their customers. If the company or bank doesn't have enough money to pay its debts, it can be difficult for them to do business, and it can cause problems for the people and businesses with money stored in accounts with them. Having rules about how much money companies and banks need to hold in their accounts helps to make sure that money is safe and secure.