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

Solomon also expressed bullishness on winning business from upcoming initial public offerings that will proceed because "it's important for those businesses and for capital formation on those businesses," he predicted.

From Barron's • Apr. 13, 2026

That sequence is governed by permitting, labor availability, engineering complexity and capital formation, not by quarterly headlines.

From The Wall Street Journal • Dec. 21, 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 an economy with high unemployment after a recession, many economists would say the impact of borrowing on capital formation is greatly reduced.

From Washington Post • Jan. 26, 2023

This factor is the mobilisation of capital and the consequent separation of the process of capital formation from the process of capital-using.

From Freeland A Social Anticipation by Hertzka, Theodor