Capital adequacy ratio refers to a bank's capital in relation to its risk. It indicates whether a bank is able to pay its financial obligations.

The capital adequacy ratio of bank ABC is 30% (($10 million + $5 million) / $50 million). Therefore, this bank has a high capital adequacy ratio and is considered to be safer.

When you consider risk, the capital adequacy ratio formula looks like this. Perhaps a bank has $20 million in Tier 1 assets and $30 million in Tier 2 assets for a total of $50 million in capital.

Capital ratio is also known as capital adequacy ratio or capital-to-risk-weighted assets ratio. Capital ratio is nothing but the ratio of capital a bank has divided by its risk-weighted assets.

banks-capital adequacy ratio SEOUL, March 31 (Yonhap) -- South Korean banks saw their capital adequacy ratio inch down last year due to an increase in risk-weighted assets amid the weakness of the ...

Essam Omar said that the Bank has promulgated a series of regulatory directives aimed at reinforcing risk management ...

The capital injection has lifted the insurer from a two-year regulatory capital breach triggered by a record loss in 2023.

Most major banks still don't have enough capital to comfortably maintain their credit ratings despite recent improvements, S&P said in a report as it introduced a new framework to track banks ...

The latest available data from the Bangko Sentral ng Pilipinas (BSP) showed that at the end of September 2008, the consolidated capital adequacy ratio of the entire banking system fell to 15.45 ...