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  • Question
  • Expand CAR, in Banking Terminology?


  • Options
  • A. Current Applicable Ratio
  • B. Capital Adequacy Ratio
  • C. Capital Available Request
  • D. Compiled Acquired Ratio

  • Correct Answer
  • 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.

  • Tags: Bank Exams, CAT, Analyst, Bank Clerk, Bank PO

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