answersLogoWhite

0

What constitutes capital adequacy risk?

Updated: 8/20/2019
User Avatar

Wiki User

11y ago

Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: What constitutes capital adequacy risk?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

How Capital Adequacy Ratio of a Bank is arrived?

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.


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 are the indicators of prudential regulations?

The main indicators of prudential regulations are capital adequacy, liquidity and risk profile.


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 prudential norms of the banks?

Prudential norms relate to income recognition,asset classification,provisioning of NPAs and capital adequacy ratios( capital to risk weighted asset ratio, CRAR)


What is the capital adequacy ratio for SBI?

13.86%


What is CAR in banking industry?

Capital Adequacy Ratio


What is CAR with reference to banking?

CAR is Capital Adequacy Ratio.


What is the meaning of compliance with capital adequacy reqiurements?

dont know the answer


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


What has the author Nestor Espenilla written?

Nestor Espenilla has written: 'Adequacy of existing level of capital implied by the Basel standards relative to the credit risk exposures of banks in the SEACEN region'


What is a risk acceptance risk?

A decision based on what constitutes an acceptable level of risk