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⍰ ASK Why is it essential for EMI institutions to maintain a specific level of capital?

EMI institutions have a primary responsibility to maintain a specific level of capital. This is essential to ensure that the institution can meet its financial obligations to customers and avoid the risk of insolvency. The capital requirement, which is determined by factors such as the size and nature of the institution, may be more stringent for larger entities as compared to smaller ones.
 

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