Political Science, asked by harichandeela8265, 1 year ago

Why maintaining capital adequacy ratio is must for banks?

Answers

Answered by Anirudhbhardwaj01
1
hii mate☆

》because Under Basel III, the minimum capital adequacy ratio that banks must maintain is 8%. The capital adequacy ratio measures a bank's capital in relation to its risk-weighted assets. The capital-to-risk-weighted-assetsratio promotes financial stability and efficiency in economic systems throughout the world.
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