Investment Glossary · Quick read · No ads
Capital Adequacy Ratio (CAR)
The short answer
A measure of a bank's available capital as a percentage of its risk-weighted assets, used by regulators to assess financial stability.
What is Capital Adequacy Ratio (CAR)?
A measure of a bank's available capital as a percentage of its risk-weighted assets, used by regulators to assess financial stability.
About this page. Written by Associate Professor Charles Lo, CPA, PhD. Checked against reliable sources before publication. No ads and no paywall. Editorial standards · How we fact check · Corrections log · Report an error
Educational information only. Nothing on this page is personal financial, tax or legal advice. Investing involves risk, including the possible loss of principal.
