capacity

A lending and credit analysis term that describes a borrower's or applicant's ability to meet debt service obligations.

See debt service coverage. American Banker Glossary

————

credit grantor's measurement of a person's ability to repay loans. Bloomberg Financial Dictionary

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capacity ca‧pac‧i‧ty [kəˈpæsti] noun

1. [uncountable] the amount of space a container, room etc has to hold things or people:

• The fuel tank has a capacity of 12 gallons.

• a conference room with a seating capacity of 500

ˈdeadweight ( carrying) caˌpacity TRANSPORT

[uncountable] the weight of goods and fuel that a ship is able to carry when it is floating in water that goes up to a line marked on its side; = DEADWEIGHT TONNAGE

2. MANUFACTURING [uncountable] the amount of something that a factory, company, machine etc can produce or deal with:

• Our production capacity has gone up again, with a throughput (= the amount dealt with ) of 800 tabloid pages per week.

• When working to full capacity (= producing as much as possible ) , the shipyard employed more than thirty craftsmen and apprentices.

exˌcess caˈpacity [uncountable] MANUFACTURING

when a company or industry has the factories, equipment etc to produce more than it is actually producing, and needs to reduce this:

• The US banking industry suffers from excess capacity - there are simply too many banks.

ˌspare caˈpacity [uncountable] MANUFACTURING

when a company or industry has the factories, equipment etc to produce more than it is actually producing and could produce more if necessary:

• Although Venezuela doesn't have much spare capacity, it could increase oil output.

— compare overcapacity

3. [singular] JOBS someone's job, position, or duty:

• Rollins will be working in an advisory capacity on this project.

• I attended in my capacity as chairman of the safety committee.

ˌlegal caˈpacity [singular] LAW

a person's or organization's right or duty to act in a particular way or to have a particular responsibility:

• Some have questioned the legal capacity of the state guaranty funds to own and operate an insurance company.

— see also debt capacity, dual capacity

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capacity UK US /kəˈpæsəti/ noun

► [S or U] the total amount or number of things or people that something can hold: a capacity of sth »

The tanks have a capacity of 1000 litres.

capacity audience/crowd »

The rally drew a capacity crowd of 15,000 people (= the place, which held 15,000 people, was completely full).

→ See also DEADWEIGHT (CARRYING) CAPACITY(Cf. ↑deadweight capacity)

► [S or U] PRODUCTION the total amount of something that can be produced: cut/expand/increase capacity »

They aim to expand capacity by 3 million barrels a day.

»

All our factories are now working at full capacity.

→ See also EXCESS CAPACITY(Cf. ↑excess capacity), SPARE CAPACITY(Cf. ↑spare capacity)

► [S or U] the ability of a person or organization to do something: capacity to do sth »

""Every industry has the capacity to go green,"" he says.

capacity for sth »

Most people have little capacity for creativity in solving problems at work.

→ See also LEGAL CAPACITY(Cf. ↑legal capacity)

► [S] WORKPLACE a particular position or job: sb's capacity as sth »

In her capacity as portfolio manager, she has primary responsibility for making day-to-day investment decisions.

»

He attends Board meetings in an advisory capacity.