capital formation

Cultural  

1. The creation of capital. For example, capital is created when banks lend the money they hold in savings accounts to firms that use the money to purchase machinery.

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Example Sentences

The better response is to keep capital formation alive and allow high prices to do what they are supposed to do: mobilize new supply, logistics improvements and investment.

From MarketWatch • May 22, 2026

With stablecoins gaining a regulatory foothold, the next frontier is the financial infrastructure they power: tokenized assets, decentralized exchanges and new means of capital formation.

From The Wall Street Journal • Apr. 8, 2026

Equity investments by well-governed merchant-banking subsidiaries in local businesses boost capital formation; those from private-equity companies all too often favor high-risk speculation.

From Barron's • Dec. 19, 2025

Investments by companies in assets such as factories, machinery or construction – also called gross fixed capital formation – make up around 30% of GDP and are its second largest contributor following private consumption.

From BBC • Mar. 26, 2025

In absolute terms annual capital formation increased from 1.06 billion leva in 1961 to 3.06 billion leva in 1970, then declined to 2.74 billion leva in 1971.

From Area Handbook for Bulgaria by Baluyut, Violeta D.