capital reserves

USAGE SUMMARY

The phrase "capital reserves" is correct and usable in written English.
It is typically used in financial contexts to refer to funds that a company has set aside for specific purposes, such as future investments or to cover unexpected expenses. Example: "The company has increased its capital reserves to ensure it can weather any economic downturns."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

It can't replace depleted capital reserves or guarantee deposits.

The New York Times

That could reduce the impact on banks' capital reserves.

The New York Times

JPMorgan Chase is pushing capital reserves provided by the funds' sponsor or its parent.

The Economist

They are stashing away capital reserves to avoid relying on banks for any expansion.

The New York Times

It set aside $29m to meet New York's requirements for capital reserves.

The Economist

The bank said it would use the money to bolster its capital reserves.

The New York Times

That has slowed the banks' ability to comply with regulators' demands to build capital reserves.

The New York Times

The flaws include relatively weak capital reserves, excessive dependence on investment banking and a tarnished reputation.

The New York Times

Mr Scholes favours relying less on VAR to calculate capital reserves against losses.

The Economist

Relatively small increases in capital reserves are unlikely to convince the financial markets.

The New York Times

The purchase will be financed with capital reserves and debt issues.

The New York Times

Expert writing Tips

Best practice

When discussing financial stability, ensure that you quantify the "capital reserves" with specific amounts or ratios to provide a clearer picture of the entity's financial health.

Common error

Avoid using "capital reserves" interchangeably with "operating capital". "Capital reserves" are specifically set aside for long-term stability or future projects, while "operating capital" is used for day-to-day expenses and immediate needs.

Linguistic Context

The phrase "capital reserves" functions as a noun phrase, typically acting as the subject or object in a sentence. It identifies specific assets set aside for future use or as a safeguard against financial instability. As confirmed by Ludwig, the phrase is correct and appropriate for use.

Expression frequency: Very common

Frequent in

News & Media

65%

Formal & Business

20%

Science

10%

Less common in

Wiki

2%

Encyclopedias

1%

Reference

2%

Ludwig's WRAP-UP

In summary, "capital reserves" is a widely used term, as Ludwig confirms, especially in the financial sector and news media, to denote funds set aside for stability, investment, or unexpected expenses. It is grammatically sound and serves the purpose of communicating financial strength. While alternatives like "financial resources" or "cash reserves" exist, "capital reserves" specifically highlights the strategic allocation of capital for future contingencies. It's important to differentiate it from terms like operating capital to avoid misuse.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Equity reserves

Specifically refers to reserves held in the form of equity, a subset of total capital.

Capital resources

Broader term encompassing all forms of capital available, not just reserves.

Cash reserves

Highlights the liquid assets readily available, contrasting with potentially illiquid forms of capital reserves.

Financial resources

Focuses on the broader aspect of available monetary means; less specific to set-aside funds.

Funding reserves

Emphasizes the aspect of having funds set aside for specific purposes or projects.

Contingency funds

Highlights the purpose of the reserves as being for unexpected events or liabilities.

Investment reserves

Stresses funds specifically designated for investment activities.

Wealth reserves

A more general term referring to accumulated wealth, which may or may not be readily accessible.

Retained earnings

Refers specifically to profits kept within a company rather than distributed as dividends.

Rainy day funds

An informal term for funds set aside for emergencies or downturns.

FAQs

How are "capital reserves" typically used in a financial context?

"Capital reserves" are generally used to ensure financial stability, fund future investments, or cover unexpected expenses. They act as a safety net for organizations, particularly in banking and insurance.

What's the difference between "capital reserves" and "retained earnings"?

"Capital reserves" are funds specifically set aside, while "retained earnings" represent the accumulated profits of a company that have not been distributed as dividends. "Capital reserves" may include funds from various sources, not just past profits.

What can be used instead of "capital reserves"?

Alternatives include "financial resources", "equity reserves", or "cash reserves depending on the specific context".

Why is it important for banks to maintain adequate "capital reserves"?

Adequate "capital reserves" protect banks against potential losses, ensure they can meet their obligations, and maintain confidence in the financial system. They also help banks comply with regulatory requirements.