Q. What does the so called capital to risk weighted assets ratio (CRAR) denote with respect to the banks? - Balance sheet strength of the banks
- Immunity of banks against capital loss
- Day today Liquidity condition of the banks
Select the correct option from the codes given below:
Answer:
Only 1 & 2
Notes: CRAR is a standard metric to measure balance sheet strength of banks. Higher the CRAR the lesser is the chance for bank to suffer capital loss. Third statement is incorrect.