capital adequacy ratio

capital adequacy ratio capital adequacy ratio ratio

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capital adequacy ratio UK US noun [C] (ABBREVIATION CAR, also capital ratio)
BANKING, FINANCE the amount of a bank's capital in relation to the amount of money that it has lent to people and organizations: »

The bank's capital adequacy ratio had to be raised from its current 4.5% level to 5.5%.


Financial and business terms. 2012.

Look at other dictionaries:

  • Capital adequacy ratio — (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR), is a ratio of a bank s capital to its risk. National regulators track a bank s CAR to ensure that it can absorb a reasonable amount of loss [Cite web |… …   Wikipedia

  • capital adequacy ratio — (Economics) ratio between the capital of a financial institution and its investments (as the ratio between the capital and total assets is higher, the capital provides a greater level of security) …   English contemporary dictionary

  • capital adequacy ratio — The proportion of a bank s total assets that is held in the form of shareholders equity and certain other defined classes of capital. It is a measure of the bank s ability to meet the needs of its depositors and other creditors. The minimum… …   Accounting dictionary

  • capital adequacy ratio — The proportion of a bank s total assets that is held in the form of shareholders equity and certain other defined classes of capital. It is a measure of the bank s ability to meet the needs of its depositors and other creditors. The minimum… …   Big dictionary of business and management

  • Capital Adequacy Ratio - CAR — A measure of a bank s capital. It is expressed as a percentage of a bank s risk weighted credit exposures. Also known as Capital to Risk Weighted Assets Ratio (CRAR). This ratio is used to protect depositors and promote the stability and… …   Investment dictionary

  • capital adequacy — /ˌkæpɪt(ə)l ædɪkwəsi/, capital adequacy ratio /ˌkæpɪt(ə)l ædɪkwəsi ˌreɪʃiəυ/ noun the amount of money which a bank has to have in the form of shareholders’ capital, shown as a percentage of its assets. Also called capital to asset ratio (NOTE:… …   Dictionary of banking and finance

  • capital adequacy — The principle upheld by banking regulators that banks should have, and be seen to have, a certain amount of capital relative to the amount of business which the banks undertake and the commercial risk associated with that business. UK banks… …   Law dictionary

  • capital ratio — ➔ ratio * * * capital ratio UK US noun [C] ► BANKING, FINANCE CAPITAL ADEQUACY RATIO(Cf. ↑capital adequacy ratio) …   Financial and business terms

  • adequacy — UK US /ˈædəkwəsi/ noun [U] ► the quality of being good enough for a particular purpose: the adequacy of sth »Questions were raised about the adequacy of the firm s control procedures. → See also CAPITAL ADEQUACY RATIO(Cf. ↑capital adequacy ratio) …   Financial and business terms

  • ratio — the proportional relationship of one thing to another * * * ratio ra‧ti‧o [ˈreɪʆiəʊ ǁ ˈreɪʆoʊ] noun [countable] a relationship between two amounts that is represented by a pair of numbers showing how much greater one amount is than the other: •… …   Financial and business terms

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