hey
can any one pls tel me
CAPITAL ADEQUACY RATIO FORMULA,
BPLR,
BASE RATE OF INTEREST
URGENT PLSSS
CA.kaya
(Chartered accountant)
(3990 Points)
Replied 18 September 2010
car=( tier one capital+ tier two capital)/risk weighted assets
This ratio is used to protect depositors and promote the stability and efficiency of financial systems around the world.
Two types of capital are measured: tier one capital, which can absorb losses without a bank being required to cease trading, and tier two capital, which can absorb losses in the event of a winding-up and so provides a lesser degree of protection to depositors.