What is the Capital adequacy ratio?

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What is the capital adequacy ratio CAR?
Posted by:
jaafar al amin
04-October-2015

Question added by Shameer Nazir Madari , Assistant Finance Manager , METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)
Date Posted: 2016/04/21

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by danish shafiq , Accountant , Anayat Fan

Capital Adequacy Ratio (CAR), also known as Capital to Risk (Weighted) Assets Ratio (CRAR), is the 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 and complies with statutory Capital requirements. It is a measure of a bank's capital.

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