What is CRAR: Capital to Risk Weighted Assets Ratio?

Capital to Risk (Weighted) Assets Ratio (CRAR) is also known as Capital adequacy Ratio, the ratio of a bank’s capital to its risk. The banking regulator tracks a bank’s CAR to ensure that the bank can absorb a reasonable amount of loss and complies with statutory Capital requirements. Higher CRAR indicates a bank is better … Continue reading What is CRAR: Capital to Risk Weighted Assets Ratio?