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:

                Tier 1 Capital + Tier 2 Capital
CAR =   ---------------------------------
                       Risk weighted assets

for more on Basel click here.

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