Risk-Based Capital Ratio
Barron's Finance & Investment Dictionary:
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Risk-Based Capital Ratio
firrea-imposed requirement that banks maintain a minimum ratio of estimated total capital to estimated risk-weighted assets.
| Risk-Adjusted Return, Risk-Adjusted Discount Rate | |
| Risk-Free Return, Risk-Return Trade-Off |
Barron's Insurance Dictionary:
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Risk-Based Capital Ratio
Measurement of the amount of capital (assets minus liabilities) an insurance company has as a basis of support for the degree of risk associated with its company operations and investments. This ratio identifies the companies that are inadequately capitalized by dividing the company’s capital by the minimum amount of capital that the regulatory authorities feel is necessary to support the insurance operations. A ratio of 1.00 or greater is deemed to be satisfactory. This standard can be used to identify inadequately capitalized life and health companies, thereby enabling regulatory authorities to intervene before a company becomes insolvent.
| Risk-Based Capital, Risk and Occupation, Risk and Insurance Management Society (RIMS) | |
| Risk-Based Capital Statistic (RBCS), Risk/Reward Basis, Robbery |
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Barron's Finance & Investment Dictionary
Dictionary of Finance and Investment Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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Mentioned in
Capital
(in banking)
Risk-Based Capital
(in banking)
Risk-Based Capital Statistic (RBCS)
(insurance term)
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