Risk-based capital ratio

Risk-based capital ratio
Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset.
Risk-free asset ...

Under the revised guidelines, there are two broad requirements: a minimum level of capital called core capital equal to 3% of total assets, and a Risk-Based Capital ratio equal to 8% of risk-adjusted assets, after December 31, 1992.

Risk-based capital ratio
Risk-Based Capital Requirement
Risk-Based Corrective Action
Risk-Based Decision Analysis
Risk-Based Disposal Approval
Risk-Based Inspection
Risk-based Inspection Guide
Risk-Based Inspection Planning
Risk-based pricing ...

A bank's risk-based capital ratio is computed by dividing its qualifying capital by its weighted risk assets.

When we think of rules nowadays, we have in mind prudential rules-rules that guide the behavior of the financial institutions. They are sometimes prescriptive (risk-based capital ratios, or limits on off-balance sheet activities), ...

Describes an investor who, when faced with two investments with the same expected return but different risks, prefers the one with the lower risk.
Risk-based capital ratio ...

See also: Banks, Mergers, Acquisitions, Expense, Saving