Financimin

Financimin is an emerging term used in discussions of financial policy and risk management. It generally refers to the idea of establishing a floor or minimum level of financial provision within a system, either for individuals, financial institutions, or markets.

The word is a portmanteau of finance and minimum (or minimization) and appears mainly in online forums, policy proposals, and speculative literature. It does not have a single formal definition in mainstream economics, and different authors use the term to describe related but distinct ideas.

In public policy, financimin is used to describe programs that guarantee a minimum standard of income or financial support, such as a guaranteed basic income or a minimum liquidity or funding floor. In corporate finance, it can refer to strategies that ensure a minimum level of liquidity or capital adequacy to shield against adverse market moves. In risk management, it denotes the concept of setting a loss or risk floor that protects portfolios from extreme downside.

Applications of financimin are debated. Proponents argue that it can stabilize households and financial systems, while critics warn of potential moral hazard or fiscal burden. Measuring financimin requires clearly defining the minimum level, scope, funding, and enforcement, and these choices vary across jurisdictions and institutions.

Related concepts include universal basic income, social safety nets, liquidity requirements, capital adequacy ratios, and risk floors in banking. As a non-standard term, financimin remains contested and its meaning is not universally agreed upon.