Introduction - Capital Adequacy Ratio
The capital adequacy ratio (CAR) is a measure of a bank's capital. It is communicated as a level of a bank's hazard weighted credit exposures. Otherwise called cash-flow to-chance weighted resources proportion (CRAR), it is utilized to ensure investors and advance the steadiness and proficiency of money related frameworks around the globe.
Capital Adequacy Ratio (CAR) is otherwise called Capital to Risk (Weighted) Assets Ratio(CRAR), is the proportion of a bank's funding to its hazard. National controllers track a bank's CAR to guarantee that it can assimilate a sensible measure of misfortune and follows statutory Capital prerequisites. It is a measure of a bank's capital. It is communicated as a level of a bank's hazard weighted credit exposures. This proportion is utilized to ensure investors and advance steadiness and productivity of money related frameworks around the globe.
Capital Adequacy Ratio (CAR) is otherwise called Capital to Risk (Weighted) Assets Ratio(CRAR), is the proportion of a bank's funding to its hazard. National controllers track a bank's CAR to guarantee that it can assimilate a sensible measure of misfortune and follows statutory Capital prerequisites. It is a measure of a bank's capital. It is communicated as a level of a bank's hazard weighted credit exposures. This proportion is utilized to ensure investors and advance steadiness and productivity of money related frameworks around the globe.
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