Capital adequacy ratios
measure the amount of a bank's capital expressed as a percentage of its risk weighted credit exposures.
Nevertheless, Capital Adequacy Ratio
(CAR) at 15.4 percent remains well above the minimum regulatory required level of 10.65 percent.
This reported capital adequacy ratio
excluding the minority interest was 12.51%.
FSC said that there are eight financial regulations relevant to capital adequacy ratio
and only one regarding capital reduction that demands banks to raise capital adequacy ratio
to 12.5% beginning next year, with the other seven not to take effect until 2019.
The upcoming issuance is expected to boost Mizuho's consolidated capital adequacy ratio
by around 0.24 percentage point.
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.
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
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.
Table 4 presents Basle capital adequacy ratio
levels and the number of banks having those levels.