Capital Adequacy Ratio - CAR
What Does Capital Adequacy Ratio - CAR Mean?
A way of measuring a bank's capital. It really is expressed as a percentage of your bank's risk weighted credit rating exposures. �
Also known as " Capital to Risk Weighted Property Ratio (CRAR). " [pic]
Investopedia explains Capital Adequacy Proportion - CAR
This ratio is used to protect depositors and promote the stability and performance of financial devices around the world. �
Two types of capital are measured: rate one capital, which can absorb losses without a bank becoming required to end trading, and tier two capital, which will absorb loss in the event of a winding-up therefore provides a smaller degree of safety to depositors.
Tier you Capital
What Does Tier 1 Capital Mean?
A expression used to describe the capital adequacy of a bank. Tier I capital is core capital, this consists of equity capital and unveiled reserves.
Rate 2 Capital
What Does Tier two Capital Mean?
A term used to explain the capital adequacy of a financial institution. Tier 2 capital is secondary traditional bank capital that features items just like undisclosed reserves, general reduction reserves, subordinated term financial debt, and more.
functioning Ratio - A performance dimension for insurance firms which reveals the amount of expenses and loss expressed as being a percentage of premium.
What Does Operating Ratio Mean?
A ratio that shows the efficiency of the company's management by simply comparing functioning expense to net sales. Computed as:
Investopedia explains Operating Percentage
The smaller the ratio, more suitable the organization's ability to create profit if revenues reduce. When using this ratio, however , investors must be aware that it doesn't take debts repayment or expansion into mind.
What Does Profitability Ratios Mean?
A class of economic metrics that are used to assess a business's capability to generate earnings as compared to its expenditures and other relevant...