What is the Car Capital Ratio? The Automobile Capital Ratio is a measurement of monetary establishments on the market capital expressed as a share of a monetary establishment’s risk-weighted credit score rating exposures. The capital adequacy ratio additionally known as capital-to-risk weighted property ratio is used to protect depositors and promote the stableness and effectivity of financial strategies worldwide. Two sorts of capital are measured: tier-1 capital, which can take up losses with no monetary establishment being required to cease shopping for and promoting, and tier-2 capital, which can take up losses throughout the event of a winding-up and so presents a lesser diploma of security to depositors. Calculating Automobile Capital Ratio The Automobile Capital Ratio is calculated by dividing a monetary establishment’s capital by its risk-weighted property. The capital used to calculate the capital adequacy ratio is break up into two tiers. Tier-1 Capital Tier-1 capital, or cor
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