Tasuvamat

Tasuvamat is a term used in the context of financial law and regulation, particularly in the European Union. It refers to the principle that financial institutions must be able to cover their liabilities, including those that may arise from future events. This principle is crucial for maintaining the stability and integrity of the financial system. Tasuvamat is derived from the Latin word "tangere," meaning "to touch," and the suffix "-mat," indicating a principle or rule. The concept is rooted in the idea that financial institutions should have sufficient capital and liquidity to meet their obligations, even in the event of adverse economic conditions or unexpected events. This principle is often enforced through regulatory requirements, such as capital adequacy ratios and liquidity coverage ratios, which ensure that financial institutions maintain a certain level of financial health and resilience. By adhering to the tasuvamat principle, financial institutions can help prevent systemic risks and contribute to the overall stability of the financial system.