Adjusted Capital Ratio
Barron's Banking Dictionary:
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Adjusted Capital Ratio
Ratio of adjusted Capital to total assets, used in computing Capital Adequacy. A bank's adjusted capital includes Loan Loss Reserves for bad debt and securities gains or losses that are charged to earnings, less loans classified as Doubtful Loans or Loss. The risk-adjusted capital guidelines, adopted by banking regulators in 1988, are aimed at developing uniform bank capital guidelines. See also Capital Adequacy; Risk-Based Capital.
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Barron's Banking Dictionary
Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.
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