Question

what do you mean by capital adequacy ratio​

Answer 1

Answer:

Capital Adequacy Ratio (CAR) is the ratio of a bank's capital in relation to its risk weighted assets and current liabilities. It is decided by central banks and bank regulators to prevent commercial banks from taking excess leverage and becoming insolvent in the process.

Explanation:

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Answer 2

Answer:

The capital adequacy ratio is a measurement of a bank's available capital expressed as a percentage of the bank's risk weighted credit exposures

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