Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR)[1], is a ratio of a bank's capital to its risk.
Definition
Capital Adequacy Ratio
It is the ratio of a bank's capital to its Risk- weighted assets. It is also known as the acrynym CAR, where CAR = Tier One Capital + Tier Two Capital / Risk Weighted Assets.
Capital Adequacy Ratio - CAR
A measure of a bank's capital. It is expressed as a percentage of a bank's risk weighted credit exposures.
Capital Allocation Line - CAL ...
Banks list their capital adequacy ratios in their financial reports. It is stated in terms of equity capital as a percent of assets.
 See also: Ratio, Asset, Capital, Risk, Investment
  
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