Respected Sir,
Would anybody please tell me how to calculate Capital Adequacy Ratio.
Thanking you in advance.
pappu
1 Replies
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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