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The Capital Adequacy Ratio of a bank is arrived at by comparing the sum of its Tier 1 and Tier 2 capital to its risk. The equation for expressing the Capital adequacy ratio is: CAR=(Tier 1 Capital +Tier2 Capital)/Risk weighted assets.
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What capital adequacy ratio rate by RBI?
apital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR), is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss [2] and are complying with their statutory Capital requirement
What is the capital adequacy management?
capital adequacy management is that the manager must decide the amount of capital that bank should maintain and then acquire the needed capital. By Alamzeb Ahmadzai
What is the financial status of icici bank in India?
Hi, We are from ICICI Bank Customer Service Team and would like to inform you that ICICI Bank has been at the forefront of India's development since 1955 and is India's leading private sector bank with over 2500 branches and 6018 ATM's and presence in 18 countries apart from India. About ICICI Bank's financial position, ICICI Bank has a strong capital adequacy ratio of 19.98% and Tier-1 capital adequacy ratio of 13.72 %, its Tier-1 capital adequacy ratio being the highest among large Indian banks. For the quarter ended December 31, 2010 (Q3-2011) ICICI Bank reported an increase in Net profit by 30.5% sequentially, to Rs 1,437 crore (US$321 million) from Rs 1,101crore (US$ 246 million) for the quarter ended December 31, 2009 (Q3-2010). Regards, ICICI Bank Customer Service Team
What is capital adequacy norms?
Matt says that it is the amount of money that a bank keeps in reserve. behind the radiator, to pay creditors.
What is Tier 1 Risk-Based Capital Ratio?
It's the ratio of leverage to core capital at a bank, wikipedia has an excellent explanation
What is Basel framework?
Basel III (or the Third Basel Accord) is a global, voluntary regulatory framework on bank capital adequacy, stress testing, and market liquidity risk. Basel III is intended to strengthen bank capital requirements by increasing bank liquidity and decreasing bank leverage. Credits: Wikipedia
What is camel in terms in bank management?
C- capital adequacy A- asset quality M- management quality E- earnings quality L- liquidity S- sensitive to market risk
Whether high capital adequacy ratio is good?
Not all the times the CAR is good if high. Consider having a high CAR ; this means that a bank's large amount of money is stuck in provisions or risk management , meaning that there will be fewer money left for investment or for the continuation of the activity. The usual CAR is somewhere around 12%.
What does the bank consider before granting an overdraft?
current ratio, net working capital and financial position are considered for granting an overdraft - DSR
When was Capital Bank created?
Capital Bank was created in 2008.
Which bank bought capital one bank?
North Fork bank was bought by Capital One.
What is the ideal absolute liquid ratio?
[1: 2] Absolute liquid assets take into account cash in hand, cash at bank, and marketable securities or temporary investments. The most favourable and optimum value for this ratio should be 1: 2. It indicates the adequacy of the 50% worth absolute liquid assets to pay the 100 percent worth current liabilities in time.
