Definition of Capital adequacy ratio - Finance dictionary
Capital adequacy ratio
Capital adequacy ratio is the limit on the risk-weighted credit exposure allowed to each financial institution depending on its capital base. It is also called the Cooke ratio. From 2005, it has been replaced by the McDonough ratios or tier one and tier two ratios.
Capital adequacy ratio
Capital adequacy ratio is the limit on the risk-weighted credit exposure allowed to each financial institution depending on its capital base. It is also called the Cooke ratio. From 2005, it has been replaced by the McDonough ratios or tier one and tier two ratios.
Capital adequacy ratio is the limit on the risk-weighted credit exposure allowed to each financial institution depending on its capital base. It is also called the Cooke ratio. From 2005, it has been replaced by the McDonough ratios or tier one and tier two ratios.