Adjusted Capital Ratio

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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 ?
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.
Also, Fitch disclosed that it expects REITs to show slightly weaker Risk Adjusted Capital Ratios as a result of the change, but no change is expected in Financial Leverage Ratios.
Fitch expects BRE's fixed charge coverage and risk adjusted capital ratios to remain relatively unchanged over the next year as property-level fundamentals moderate and as construction expenditures taper off.
A more appropriate level of reserves given the pace of deterioration and the potential further migration towards lower credit risk classifications would require significantly larger provisioning efforts which would, in turn, pressure profitability and internal capital generation at a time when Santos' risk adjusted capital ratios have dropped close to regulatory minimums.
On the other hand, the capital base of the combined entity should be adequate and both BC and Edwards have maintained similar risk adjusted capital ratios, which were 11.