Capital Adequacy Ratio

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Capital Adequacy Ratio

A measure of a bank's ability to meet its obligations relative to its exposure to risk. The capital adequacy ratio exists to ensure that a bank is able to handle losses and fulfill its obligations to account holders without ceasing operations. It is calculated as:

CAR = ( Tier 1 Capital + Tier 2 Capital ) / Risk-weighted assets.
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HE Sheikh Abullah Salim Al Salmi, Executive President of the Omani Capital Market Authority (CMA) has issued an administrative decision on the new rules for capital adequacy for the companies operating in securities, to enhance their risk management in the capital market such as market volatility risks, settlement risk, credit risk, operation risks and liquidity risk through robust requirements and control systems.
Explaining its decision to seek this loan, the bank said that changes to the Instructions on the Safe Operation Standards implemented by the National Bank became effective in November 2013, which led to the significant deterioration of the capital adequacy indicators of Belarusian banks that have a substantial share of foreign currency loans in their portfolio.
Nonetheless, overall bright picture is spoiled by capital adequacy ratios.
Global Banking News-December 10, 2012--China sets capital adequacy ratio for banks(C)2012 ENPublishing - http://www.
19, 2012 (CENS) -- Taiwan's Financial Supervisory Commission (FSC) will broadly revise rules regarding capital adequacy ratio to meet the Basel III Accord, which will be adopted starting January 2013.
Muscat, Oct 6 (ONA) The Union of Arab Banks in collaboration with Central Bank of Oman (CBO ) will hold tomorrow (Sunday) at Crowne Plaza a 3-day symposium on Internal Self-Assessment for Capital Adequacy and New Requirements and Standards for Liquidity Risk Management.
Bank of Cyprus's total capital adequacy ratio stood at 11.
Global Banking News-February 18, 2011--CRBC says capital adequacy of banks have improved(C)2011 ENPublishing - http://www.
The preliminary BIS capital adequacy ratio of domestic banks posted a record high of 12.
Insurance regulators throughout the world are wrestling with fast-changing expectations about capital adequacy, while trying to keep up with efforts by international organizations to harmonize the myriad regulatory systems in place in various countries.
efforts to implement the Basel II Framework through revisions to our existing capital adequacy regulations.
Various degrees of risk weighting were set in 1988 by the Basel-based Bank for International Settlements (BIS) to help banks compute their capital adequacy ratios and limit excessive exposure to risky assets.
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