# Target surplus

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'''Target surplus''' represents the amount of additional capital held by a financial institution beyond the regulatory [reserve requirements](/source/reserve_requirements) in order to reduce the chances of breaching [capital adequacy](/source/Capital_requirement) or solvency requirements.<ref>{{cite web |title=Practice Guideline 6A: Target Capital (Life, General and Health<!-- "Heath" in original --> Insurance) |url=https://www.actuaries.asn.au/Library/Standards/MultiPractice/2022/PG6ATargetCapital.pdf |publisher=The Institute of Actuaries of Australia |access-date=30 June 2024 |date=1 April 2022}}</ref>

==References==
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==See also==
*[Current ratio](/source/Current_ratio)
*[Working capital](/source/Working_capital)

Category:Financial regulation

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Adapted from the Wikipedia article [Target surplus](https://en.wikipedia.org/wiki/Target_surplus) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Target_surplus?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.