Understanding Capital Adequacy Ratio: A Key to Financial Stability
Capital Adequacy Ratio (CAR) The Capital Adequacy Ratio (CAR) stands as an essential metric in the financial industry, decisively evaluating a bank’s capacity to absorb potential losses and sustain its operations even in challenging economic conditions. By rigorously measuring a bank’s capital against its risk-weighted assets, CAR unequivocally acts as a key indicator of “financial… Read More »