Capital Adequacy Ratio (CAR)

Capital Adequacy Ratio (CAR),

Capital Adequacy Ratio (CAR): What is the Meaning of Capital Adequacy Ratio (CAR)?

  • The Capital Advocacy Index (CAR) is a measure of a bank's available capital, expressing the percentage of credit risk weighed down by the bank's risk. The Capital Equity Index, also called the Capital Risk Weighted Asset Ratio (CRAR), is designed to protect depositors and promote the stability and efficiency of financial systems worldwide. . Two types of capital are being measured: Tier 1 Capital, which can harm a bank without interference, and Tier 1 Capital, which can absorb settlement losses, provide less protection to depositors.

    • CAR It is important to make sure that the bank has significant written offs to cover the appropriate losses before it goes bankrupt.
    • Regulators use CAR to determine the bank's capital liabilities and to conduct stress tests.
    • CAR measures two types of capital. Tier 1 Capital can absorb a fair amount of losses by forcing banks to close without any operations, while Tier 1 Capital can bear losses in case of capital utilization.
    • The disadvantage of using the Central African Republic is that it does not risk a possible bank withdrawal or what would happen in a financial crisis.

Literal Meanings of Capital Adequacy Ratio (CAR)

Capital:

Meanings of Capital:
  1. The central city of a country or region, usually the seat of government and administration, a place that is more connected to others through a particular activity or product.

  2. Assets in the form of money or other assets that belong to an individual or organization are either available or have participated in a particular purpose, for example. B. To start a business or to invest.

  3. Font size and sentence format and name start.

  4. Convicted (crime or charge) with death.

  5. (Alphabet letter) with a capital letter and designed to start sentences and names.

  6. Exceptional.

  7. It is used to indicate approval, satisfaction or happiness.

  8. The spoken part is usually wider in the column or at the top of the column.

Sentences of Capital
  1. Warsaw is the capital of Poland

  2. Higher return on investment capital

  3. Write the name in capital letters

  4. Murder was a serious crime

  5. Assuming the article is ready for publication, it also shows a capital N with some names along with my name.

  6. Capital of the Cast Pillar

Synonyms of Capital

first city, most important city, seat of government, centre of administration, money, finance, finances, funds, the wherewithal, the means, assets, wealth, resources, reserves, deep pockets, stock, principal, capital letter, upper-case letter, block capital, upper-case, block

Adequacy:

Meanings of Adequacy:
  1. Condition or standard may be appropriate.

Sentences of Adequacy
  1. Qualification of test method

Synonyms of Adequacy

acceptability, reasonableness, passableness, satisfactoriness, fairness

Ratio:

Meanings of Ratio:
  1. A quantitative relationship between two quantities, indicating how many times one value joins another or joins another.

Sentences of Ratio
  1. The employment rate for men and women is 8 to 1

Synonyms of Ratio

proportion, comparative extent, comparative number, quantitative relation, correlation, relationship, correspondence, balance

CAR:

Meanings of CAR:
  1. A four-wheeled land truck that is motorized and can carry very few people.

Sentences of CAR
  1. He got into the car

Synonyms of CAR

automobile, motor, machine