Banks - Fintrovert

What is Capital Adequacy Ratio (CAR)?

September 8, 2023June 22, 2021 by Fintrovert

What is Capital Adequacy Ratio (CAR)? Capital Adequacy Ratio (CAR) is the ratio of a bank’s capital (tier 1, tier 2) and its risk(weighted). Thus, it is also known as Capital to Risk-Weighted-Assets Ratio (CRAR). It determines the level of capital with the bank in relation to the exposure risk and is monitored by the … Read more

What Is Statutory Liquidity Ratio (SLR)?

September 8, 2023June 18, 2021 by Fintrovert

What Is Statutory Liquidity Ratio? Statutory Liquidity Ratio (SLR) is the least percentage of deposits that a commercial bank keeps with itself in the form of liquid cash, gold, or any other security. Actually, it is reserve cash that banks keep before providing credits to their customers. Just like CRR (Cash Reserve Ratio), SLR is … Read more