Capital Adequacy Ratio (CAR)

Category: Financial Risk · Abbreviation: CAR

What is Capital Adequacy Ratio?

Measure of a banks capital expressed as a percentage of its risk-weighted assets, used to protect depositors and promote stability.

Related terms

• CET1
• Tier 1 Capital

More Financial Risk terms

• Capital Planning
• Common Equity Tier 1 (CET1)
• Economic Capital
• Expected Shortfall (ES)
• Fair Value
• Financial Risk

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