what do u mean by capital adequacy ratio?

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what do u mean by capital adequacy ratio?..

Answer / suresh j

Capital adequacy ratio is used to measure the performance
of bank in terms of capital.According basel II every bank
is required to maintain 9% CAR.It can be obtained by
dividing capital by risk.

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what do u mean by capital adequacy ratio?..

Answer / karan moondra

CAR is the amount in % that every bank has to keep with itself inorder to meet risk either it can be operational risk. It is used to measure the performance of the bank in terms of its risk bewaring capacity.

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