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Q:
A) Current Applicable Ratio | B) Capital Adequacy Ratio |
C) Capital Available Request | D) Compiled Acquired Ratio |
Answer: B) Capital Adequacy Ratio
Explanation:
Explanation:
Capital Adequacy Ratio (CAR) is also known as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ratio of a bank's capital to its risk.
1. The capital adequacy ratio (CAR) is a measure of a bank's capital.
2. It is used to protect depositors and promote the stability and efficiency of financial systems around the world.
3. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss and complies with statutory Capital requirements.