Also: capital base.

(1) In a broader sense a synonym for equity capital.

(2) Banking: Article 11 of the Implementing Ordinance for the Swiss Banking Law stipulates that equity consists of core capital (Tier 1 comprising paid-up capital, disclosed reserves and profit brought forward) as well as certain additional capital components eligible for inclusion in tier one (undisclosed reserves and subordinated bond issues). Equity capital must satisfy the requirements set out in the Banking Law, but in most cases it goes beyond these prescribed limits. Equity is an important measure of how financially sound a bank is.

(3) Lending: the capital or assets which an applicant must usually have (except in leasing) in order to be granted a loan.