The difference between the sum of the present values of all cash flows from assets and the sum of the present values of all cash flows from liabilities. In other words, the market value of the institution’s capital account. Defined by the Office of Thrift Supervision (OTS) to represent the difference between the market value of a financial institution’s assets and liabilities plus or minus the value of any off-balancesheet positions. This is a proxy or estimate used for capital when the sensitivity of capital to changes in prevailing interest rates is calculated. As used by thrift institutions and the OTS, the term has been replaced by "net portfolio value" or NPV. As used by bankers and banking regulators, the term is slowly being replaced by "economic value of equity" or EVE. See net economic value and value at risk.