The amount of equity capital and other securities a bank holds as reserves against risky assets to reduce the probability of a bank failure is know as:

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The amount of equity capital and other securities a bank holds as reserves against risky assets to reduce the probability of a bank failure is known as bank capital adequacy. Value-at-risk refers to the maximum amount of potential loss that an investment portfolio may face in a given time period. Negotiable certificate of deposit and eurocurrency reserve are both types of financial instruments used for short-term borrowing and lending in the international money market.

The Amount of Equity Capital and Other Securities a Bank