Which among the following is the main factor which makes the banks to maintain a Capital Adequacy Ratio?
Which among the following is the main factor which makes the banks to maintain a Capital Adequacy Ratio?
[A]Liquidity
[B]Risk
[C]Credit Rating
[D]Hedging
Risk
Capital Adequacy Ratio is the capital to assets ratio which banks are required to maintain against risks. It is also known as Capital to Risk (Weighted) Assets Ratio (CRAR).