Join ExamsbookAnswer : 2. "Capital Adequacy Ratio"
Expand CAR, in Banking Terminology?5
Q: Expand CAR, in Banking Terminology?
- 1Current Applicable Ratiofalse
- 2Capital Adequacy Ratiotrue
- 3Capital Available Requestfalse
- 4Compiled Acquired Ratiofalse
- Show AnswerHide Answer
- Workspace
Answer : 2. "Capital Adequacy Ratio"
Explanation :
Answer: B) Capital Adequacy Ratio 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.