Metrics & KPIsCapital adequacy ratio (CAR)
Definition
A measure of a bank's capital. It is expressed as a percentage of a bank's risk weighted credit exposures
Formula
(tier1 capital + tier 2 capital) divided by (risk weighted assets)
Tags
risk, capital, exposure
A measure of a bank's capital. It is expressed as a percentage of a bank's risk weighted credit exposures
risk, capital, exposure