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Home > QFINANCE Dictionary > Definition of capital adequacy ratio

Definition of

capital adequacy ratio


percentage of bank's assets represented by capital an amount of money which a bank has to hold in the form of stockholders' equity, shown as a proportion of its risk-weighted assets, agreed internationally not to fall below 8%.

Related definitions of "capital adequacy ratio"

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Definitions of ’capital adequacy ratio’ and meaning of ’capital adequacy ratio’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’capital adequacy ratio’ and other financial terms with our online QFINANCE Financial Dictionary.

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