CRR - 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 Cash Reserve Ratio (CRR)?

September 8, 2023March 18, 2021 by Fintrovert

What is Cash Reserve Ratio (CRR)? The commercial banks keep hold of a specific least amount of the deposits as a reserve with the central bank. The percentage of the cash that is kept in reserves against the bank’s total deposit amount is called Cash Reserve Ratio (CRR). The cash reserve ratio is kept in … Read more