excess capital

USAGE SUMMARY

"excess capital" is a correct and usable phrase in written English.
You can use it to refer to financial resources that exceed the amount needed by a business or individual to function. For example: "After the merger, the company had excess capital to invest in long-term projects."

✓ Grammatically correct

News & Media

Formal & Business

Science

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

His primary screen looks for excess capital.

The New York Times

"We saw plenty of excess capital generation," Mr. Hoyle said.

The New York Times

But MetLife estimates it has excess capital of around $5 billion.

The New York Times

It's probably the best thing for all investors when excess capital goes back through buybacks".

The Guardian - Business

Surely, then, with their high profitability, they should be throwing off plenty of excess capital?

The Economist

Today ING reckons it has around €5.5 billion in excess capital.

The Economist

One is that the banks may have elected to hold onto the excess capital for now.

The New York Times

Wachovia also anticipates that it will have $1.7 billion in excess capital available after the merger to buy back stock.

The New York Times

"We took that opportunity to build an even more robust excess capital cushion than we had previously targeted," he said.

The Guardian - Business

To be sure, none of these banks are paying out all of their excess capital in dividends or stock buybacks.

The New York Times

That's makes for an average of $6.5 billion of excess capital to hand back to shareholders every 12 months.

The New York Times

Expert writing Tips

Best practice

When discussing a company's financial health, use "excess capital" to denote funds available for investments, dividends, or debt reduction. This term conveys a sense of financial stability and opportunity.

Common error

Avoid using "excess capital" when you actually mean "excess capital expenditures". The latter refers to overspending on fixed assets, while "excess capital" is about having more funds than immediately needed.

Linguistic Context

Excess capital functions primarily as a noun phrase, typically acting as the subject or object of a sentence. According to Ludwig, the phrase is correct and refers to financial resources exceeding what is needed. It is used to describe a company's financial position or a market condition.

Expression frequency: Very common

Frequent in

News & Media

57%

Formal & Business

29%

Science

14%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

In summary, "excess capital" is a grammatically sound and frequently used term to describe financial resources exceeding immediate needs, commonly found in news, business, and scientific contexts. Ludwig AI confirms its correctness and usability. It's crucial to differentiate it from similar terms like "excess capital expenditures". When writing about "excess capital", highlight its potential uses for investment, debt reduction, or shareholder returns, while also considering the potential risks of inefficient management. Top authoritative sources like The New York Times and Forbes frequently employ the term.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

surplus capital

Replaces "excess" with "surplus", a direct synonym, maintaining the core meaning of capital beyond what is needed.

surplus funds

Combines "surplus" with "funds", offering a similar meaning as "excess funds" but with a slight nuance.

excess funds

Substitutes "capital" with "funds", broadening the scope to include various forms of monetary resources.

excess reserves

Focuses on capital held in reserve, highlighting a specific type of "excess capital" often used in banking contexts.

surplus cash

Emphasizes the availability of liquid assets beyond immediate needs, combining liquidity and excess.

excess cash

Replaces "capital" with "cash", narrowing the scope to liquid assets, emphasizing immediate availability.

idle capital

Highlights the underutilization aspect of "excess capital", suggesting that the capital is not being actively used.

available capital

Focuses on the accessibility of the capital, emphasizing that it is ready for use or investment.

unallocated capital

Emphasizes that the capital has not been designated for a specific purpose, highlighting its flexibility.

uninvested capital

Focuses on the fact that the capital has not been invested, implying an opportunity cost.

FAQs

How is "excess capital" typically used in financial contexts?

"Excess capital" is used to describe a situation where a company or entity has more capital than is required for its current operations. This capital can be used for investments, acquisitions, paying down debt, or returning value to shareholders through dividends or stock buybacks.

What are some synonyms for "excess capital"?

Alternatives to "excess capital" include "surplus capital", "excess funds", and "unallocated capital". The best choice depends on the specific nuance you want to convey.

How does "excess capital" benefit a company?

Having "excess capital" allows a company to pursue growth opportunities, withstand economic downturns, and increase shareholder value. It provides financial flexibility and can signal stability to investors.

What are the potential risks of having "excess capital"?

While generally positive, "excess capital" can lead to inefficient investment decisions if not managed properly. It can also make a company a target for hostile takeovers if investors believe the capital is not being used effectively. Also "taking excess capital" to achieve that outcome leads to a brittle, inflexible company.