Adjusted Capital Ratio

Adjusted Capital Ratio

A ratio of a bank's capital to its total assets. It is calculated by taking the bank's allowance for bad debt and gains on its securities, and subtracting its losses and probable bad debt. The adjusted capital ratio is one way to calculate the bank's capital adequacy.
References in periodicals archive ?
It should also allow NBAD to operate with very strong capitalisation, as measured by our risk adjusted capital ratio of above 15 per cent before adjustments over the next 18-24 months.
Consequently, the notes will no longer be eligible for inclusion in the Bank's Risk Adjusted Capital ratio in accordance with S&P's bank hybrid methodology.
Berlin Hyp's standalone credit profile also benefits from the bank's stable earnings generation throughout the financial crisis and adequate risk adjusted capital ratios, as reflected in a Basel II Tier 1 ratio of 10.
In the REIT sector, no distinction is made between cumulative and non-cumulative preferred capital; both are assigned to the 50% debt/ 50% equity category to calculate Risk Adjusted Capital Ratios, and to the 100% equity category to calculate Financial Leverage Ratios.