capital adequacy
1capital adequacy — The principle upheld by banking regulators that banks should have, and be seen to have, a certain amount of capital relative to the amount of business which the banks undertake and the commercial risk associated with that business. UK banks… …
2capital adequacy — The measure of the sufficiency of a firm s funds to meet its business and regulatory obligations; see financial resources and financial resources requirement. Dresdner Kleinwort Wasserstein financial glossary * * * capital adequacy ˌcapital… …
3capital adequacy — /ˌkæpɪt(ə)l ædɪkwəsi/, capital adequacy ratio /ˌkæpɪt(ə)l ædɪkwəsi ˌreɪʃiəυ/ noun the amount of money which a bank has to have in the form of shareholders’ capital, shown as a percentage of its assets. Also called capital to asset ratio (NOTE:… …
4Capital adequacy ratio — (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR), is a ratio of a bank s capital to its risk. National regulators track a bank s CAR to ensure that it can absorb a reasonable amount of loss [Cite web |… …
5capital adequacy ratio — ➔ ratio * * * capital adequacy ratio UK US noun [C] (ABBREVIATION CAR, also capital ratio) ► BANKING, FINANCE the amount of a bank s capital in relation to the amount of money that it has lent to people and organizations: » …
6Capital Adequacy Ratio - CAR — A measure of a bank s capital. It is expressed as a percentage of a bank s risk weighted credit exposures. Also known as Capital to Risk Weighted Assets Ratio (CRAR). This ratio is used to protect depositors and promote the stability and… …
7Capital Adequacy Directive — The Capital Adequacy Directive is a European directive that aims to establish uniform capital requirements for both banking firms and non bank securities firms. The original 93/6/EEC ( CAD1 ) directive was amended by 98/31/EEC ( CAD2 ), to… …
8capital adequacy ratio — (Economics) ratio between the capital of a financial institution and its investments (as the ratio between the capital and total assets is higher, the capital provides a greater level of security) …
9capital adequacy ratio — The proportion of a bank s total assets that is held in the form of shareholders equity and certain other defined classes of capital. It is a measure of the bank s ability to meet the needs of its depositors and other creditors. The minimum… …
10capital adequacy ratio — The proportion of a bank s total assets that is held in the form of shareholders equity and certain other defined classes of capital. It is a measure of the bank s ability to meet the needs of its depositors and other creditors. The minimum… …
