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In the field of banking what does CRAR...

In the field of banking what does CRAR stand for?

A

Capital Reserve Adequancy Ratio

B

Capital to Risk (weighted) Assets Ratio

C

Capital Reserve Assets Ratio

D

Capital Risk Adequancy Ratio

Text Solution

Verified by Experts

The correct Answer is:
B
CRAR is the acronym for capital to Risk (weighted) Assets Ratio, a standard metric to measure balance sheet strenght of banks. BASEL 1 and BASEL II are gobal capital a bank has to hold given the size of its risk weighted assets.
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