What is Capital Adequacy Ratio (CAR) or Capital to Risk Weighted Assets Ratio (CRAR) as per BASEL?
Friday, January 10, 2014
ChartAcc.com - As per Basel, CAR is a measure of a Bank's capital. It is percentage of a Bank's Risk Weighted Credit Exposures.
Formula to calculate Capital Adequacy Ratio is as follows:
for more on Basel click here.
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Posted by Vikrmn: Author of "10 Alone" (CA Vikram Verma) 10Alone.com
Formula to calculate Capital Adequacy Ratio is as follows:
Tier
1 Capital + Tier 2 Capital
CAR = ---------------------------------
Risk weighted assets
for more on Basel click here.
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Visit http://www.ChartAcc.com
Posted by Vikrmn: Author of "10 Alone" (CA Vikram Verma) 10Alone.com
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