CRAR is the ratio of a bank’s capital in relation to its risk weighted assets and current liabilities. In other words, it calculates the amount of capital a bank has with it as a proportion of its overall exposure to credit.
The full form of CRAR is Capital to Risk Assets Ratio. It is also Known as CAR (Capital Adequacy Ratio).
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CRAR is the ratio of a bank’s capital in relation to its risk weighted assets and current liabilities. In other words, it calculates the amount of capital a bank has with it as a proportion of its overall exposure to credit.
The full form of CRAR is Capital to Risk Assets Ratio. It is also Known as CAR (Capital Adequacy Ratio).