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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Those banks, whose assessment of stability in 2019 was conducted using three stages, and the results of which the National Bank identified the required level of capital adequacy ratios, would have to comply with appropriate capitalization / restructuring programs and ensure compliance with the required level of capital adequacy ratios by September 30, 2020 .
Commercial banks in Vietnam are seeing improved capital adequacy ratios.
This Guidance Notes (GN) on regulatory capital defines eligible capital for the purpose of computing Capital Adequacy Ratio (CAR) by NIFIs in Nigeria, while noting that the rules governing regulatory capital, its components and required deductions to the capital levels shall be applied by the NIFIs for assessment of qualifying capital.
Summary: Capital Adequacy Standards in line with international regulatory framework: Central Bank
Azerbaijani banks' capital adequacy is the highest among CIS systems, Trend reports referring to Moody's report.
Four banks breached capital adequacy rules, which require an institution to have a minimum core capital to total risk-weighted assets ratio of 10.5 per cent and total capital to total risk-weighted assets ratio of 14.5 per cent.Three lenders were in violation of the CBK capital adequacy rule, which requires an institution to maintain a minimum core capital of Sh1 billion.
The total capital adequacy ratio showed an increase of 3.4 per cent during the second quarter of 2018, compared to a decrease of 0.5 per cent during the corresponding period of 2017, reported Emirates news agency, citing statistics from the Central Bank of the UAE.
Hong Kong: Fitch Ratings said a recent asset-quality review has eased uncertainty over capital adequacy in the Mongolian banking system.
The IFSB-15 provides global capital adequacy standards set by the Malaysia-based Islamic Financial Services Board for the institutions offering Islamic financial services.
The Africa Finance Corporation's A3 rating and stable outlook reflect a range of credit strengths, including sound capital adequacy and a high liquidity position, an absence of non-performing loans and stringent prudential ratios aimed at reducing credit risk, Moody's Investors Service said in a report published this past week.
The Bank plans to use the proceeds of the offering for general corporate purposes and to strengthen its capital adequacy. KAMCO Investment Company (KAMCO) and Kuwait Financial Centre (MARKAZ) are the joint lead managers.
In a report to Congress released Monday, the NCUA provided more details regarding how examiners will determine capital adequacy when enforcing the agency's final risk based capital rule.
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