Meaning of “capital adequacy ratio” in the English Dictionary

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"capital adequacy ratio" in Business English

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capital adequacy rationoun [ C ]

uk us 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:

The bank's capital adequacy ratio had to be raised from its current 4.5% level to 5.5%.

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