capital reserve

USAGE SUMMARY

"capital reserve" is a correct and usable part of a sentence in written English.
It is usually used to refer to a company's financial reserves, which are set aside for emergency expenses or to finance long-term investments. For example: "The company increased its capital reserve to prepare for any potential downturns in the market."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

57 human-written examples

The county retains the remaining $400,000 in a capital reserve fund for maintenance at WestHelp.

The New York Times

In September, Fannie agreed to increase its capital reserve to $9.4 billion.

The New York Times

Waterbury, Conn., $100 million of general obligation, special capital reserve fund bonds.

The New York Times

The one cooperative effort, Basel III, which sets stricter capital reserve requirements for banks, is still full of holes.

The New York Times

Your personal capital reserve and future earnings should drive your ability to make a change and not your portfolio return.

The New York Times

Mr. Dimon responded that JPMorgan had supported some elements of the new regulations, including higher capital reserve requirements.

The New York Times

On Friday, for the second time in a month, the Chinese central bank raised the capital reserve requirements for banks as a way of controlling rising prices.

The New York Times

Last month Commerzbank said it would sell assets and temporarily stop issuing new credit through its troubled EuroHypo unit to meet tougher capital reserve requirements.

The New York Times

What I am telling people is that if we can retain a reasonable capital reserve, we can invest in these things, technology, locations and new prototypes".

The New York Times - Sports

The accord would more than double the capital requirements and be countercyclical, meaning that as losses accrued, capital reserve requirements would increase.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

1 human-written examples

For instance, Ssangyong Cement, the parent company, boasts total shareholders' equity of 1.3 trillion won ($1.5 billion) and a 721% capital-reserve ratio.

The Economist

Expert writing Tips

Best practice

Use "capital reserve" when referring to funds specifically designated for long-term investments, unexpected expenses, or regulatory compliance in financial institutions.

Common error

Avoid using "capital reserve" interchangeably with operating capital. Operating capital is used for day-to-day expenses, whereas a "capital reserve" is for long-term needs and emergencies.

Linguistic Context

The phrase "capital reserve" functions primarily as a noun phrase, typically acting as the subject or object of a sentence. It identifies a specific type of financial resource set aside for future use. Ludwig examples showcase its use in discussing financial regulations and company finances.

Expression frequency: Very common

Frequent in

News & Media

61%

Formal & Business

19%

Science

17%

Less common in

Wiki

3%

Encyclopedias

0%

Reference

0%

Ludwig's WRAP-UP

In summary, the phrase "capital reserve" is a well-established and frequently used noun phrase in financial contexts. Ludwig AI confirms its grammatical correctness and common usage. It typically refers to funds set aside for long-term needs and emergencies, distinct from operating capital. The phrase is most commonly found in news and media, formal business documents, and scientific publications. Alternatives include "reserve fund" and "contingency fund", depending on the specific nuance intended. When using "capital reserve", ensure it is clearly defined and not confused with operating capital for effective communication.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Reserve fund

General term for funds set aside.

Cash reserves

Highlights the liquidity aspect of the reserve.

Financial buffer

Focuses on the protective aspect of the reserve.

Contingency fund

Emphasizes the purpose of covering unexpected events.

Rainy day fund

An idiomatic term for a fund reserved for difficult times.

Surplus capital

Highlights that the capital is in excess of immediate needs.

Capital surplus

Similar to surplus capital, but with slightly different nuance.

Retained earnings

Specifies the source of the reserve as accumulated profits.

Capital cushion

Suggests the reserve provides stability and protection.

Statutory reserve

Emphasizes that the reserve is required by law.

FAQs

How is a "capital reserve" typically used in a business context?

A "capital reserve" is commonly used for long-term investments, covering unexpected expenses, meeting regulatory requirements, and ensuring financial stability. It's a strategic fund set aside for future needs rather than day-to-day operations.

What are some synonyms for "capital reserve"?

Alternatives include "reserve fund", "contingency fund", "financial buffer", and "retained earnings". The best choice depends on the specific context and nuance you want to convey.

How does a "capital reserve" differ from operating capital?

Operating capital is used for day-to-day expenses and immediate operational needs. A "capital reserve", on the other hand, is a fund set aside for long-term investments, unexpected crises, or future liabilities. It's not intended for routine expenses.

Why is it important for companies to maintain a healthy "capital reserve"?

Maintaining a healthy "capital reserve" enhances a company's financial stability, allows it to weather economic downturns, provides resources for strategic investments, and improves its creditworthiness. It acts as a safety net and demonstrates financial responsibility.