capital adequacy ratio

noun [C] (abbreviation CAR, also capital ratio)

Definition

› BANKING, FINANCE the amount of a bank's capital in relation to the amount of money that it has lent to people and organizations: The bank's capital adequacy ratio had to be raised from its current 4.5% level to 5.5%.

(Definition of capital adequacy ratio noun from the Cambridge Business English Dictionary © Cambridge University Press)

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