Respected Sir,
Would anybody please tell me how to calculate Capital Adequacy Ratio.
Thanking you in advance.
pappu
Devendra
(Qualified Audit Assistant)
(521 Points)
Replied 15 December 2008
Capital Adequacy Ratio is the ratio of a bank's capital to its risk.
Capital adequacy ratios ("CAR") are a measure of the amount of a bank's capital expressed as a percentage of its risk weighted credit exposures.
Capital adequacy ratio is defined as
CAR= Capital/Risk
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