Two competing commercial banks situated in the same region have
comparable asset portfolios, but one operates...
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Finance
Two competing commercial banks situated in the same region havecomparable asset portfolios, but one operates with a total capitalratio of 10%, while the other operates with a ratio of 12%. Comparethe opportunities and risk profiles of the two banks.
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Ans Capital Ratio Capital Ratio is nothing but Capital Adequacy Ratio also known as capital to Riskweighted asset ratio This ratio measures the Banks capital with respect to its riskweighted assets Under the Basel III norms Banks are required to maintain a minimum amount of capital ratio for the stabilities of the Banks Under the Basel III
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