Capital adequacy ratios (CAR) of commercial banks in Vietnam have improved because of their increased equity, the central bank of the nation said.
Security Bank's judicious use of capital resulted in sustained strong
capital adequacy ratios. Common Equity Tier 1 Ratio was at 16.19 percent and Total
Capital Adequacy Ratio was at 18.46 percent in the second quarter of 2018 versus 16.63 percent and 18.95 percent, respectively, a year ago.
Banks are following Basel III principles for calculating the
Capital Adequacy Ratios effective December 2017 in line with the Guidelines issued by the Central Bank.
"We could affirm the ratings if we see that the bank receives sufficient capital support, restoring
capital adequacy ratios to substantially above the minimum required levels, and if the risks of noncompliance with regulatory requirements subside, while the bank's liquidity position remains stable," said the report.
Silkbank stands fully compliant on SBP's Minimum Capital Requirement (MCR) as well as the
Capital Adequacy Ratios (CAR).
"As a result, the Group's
capital adequacy ratios will be negatively affected.
The authorities will also examine the financial soundness and
capital adequacy ratios of 85 savings banks, and announce appropriate measures based on the assessments by the end of September.
Speaking at the same conference, Central Bank Governor Muhammad al-Jasser said Saudi banks were in a good position to extend loans to the private sector thanks to robust
capital adequacy ratios.
IFSB-2 proposes two methods to calculate
capital adequacy ratios of IIFS.
UAE banks have sought to strengthen their
capital adequacy ratios following new rules issued by the country's Central Bank.
The
capital adequacy ratios of financial institutions are calculated on the basis of their assets weighted according to credit risks assigned under international standards.
