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.

References in periodicals archive

Capital adequacy ratios measure the amount of a bank's capital expressed as a percentage of its risk weighted credit exposures.

Capital, reserves of UAE banks hit $90bn in Q2

Nevertheless, Capital Adequacy Ratio (CAR) at 15.4 percent remains well above the minimum regulatory required level of 10.65 percent.

Advances to private sector likely to rise in next quarter: Report

This reported capital adequacy ratio excluding the minority interest was 12.51%.

Nordax Finans reports on restructuring of ownership

The upcoming issuance is expected to boost Mizuho's consolidated capital adequacy ratio by around 0.24 percentage point.

Mizuho to issue 139.5 bil. yen worth of preferred securities

Parent bank Emirates NBD said in March it would seek to raise about Dh3 billion in 2010 through debt issues in order to meet central bank requirements to increase its capital adequacy ratio by the end of June.

Emirates Islamic Bank in $300m Rights Issue

Best still believes the catastrophe models are a valuable tool in monitoring the normal distribution of potential catastrophe losses, and will continue to use modeled output in its evaluation of capitalization through Best's Capital Adequacy Ratio (BCAR).

A.M. Best increases surveillance of insurers' catastrophe exposures

The larger the total of a bank's risk assets, the lower the capital adequacy ratio of the bank, unless it can boost its capital accordingly.

FSA to keep JGB risk weighting at zero despite rating cut

Table 4 presents Basle capital adequacy ratio levels and the number of banks having those levels.

Fair value accounting and regulatory capital requirements

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