Which of the following risks are associated with the calculation of Capital to Risk weighted Assets ...........

Current GK (IBPS-CL) Banking Awareness

Download Solution PDF

Which of the following risks are associated with the calculation of Capital to Risk (weighted) Assets Ratio (CRAR)?

I. Operational Risk

II. Market Risk

III. Credit Risk

Select the correct option from the given option:

Only I

Only I & II

Only III

Only I & III

All I, II & III

छोटे Courses बड़े Results

Master Banking Awareness

Prepare through Micro-courses

Try Now

Explanation:

Capital Adequacy Ratio (CAR) is also known as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss and complies with statutory Capital requirements.
Total capital ratio (CRAR) = Eligible Total Capital / RWA for (Credit risk + Market risk + Operational risk)