Kapitalpolster, Kapitaldecke

“Capital cushion,” “capital blanket.” The former is an informal and the latter a formal way of referring to the money a bank holds in reserve to cover its wagers, reserves which tended to fall dangerously low during deregulation but are now recovering. Deutsche Bank for example moved from <6% to 8% “core” capitalization in the past year. A bank with insufficient capital held in reserve is apparently said to have “thin capitalization” in English, whereas in German you would say its capital blanket is too short.

(Cop ee TALL pollster,   cop ee TALL deck eh.)

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