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Rajnish
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Rajnish
Asked: December 3, 20202020-12-03T18:22:01+05:30 2020-12-03T18:22:01+05:30In: UPSC PRELIMS

What is CRAR?

What is CRAR? Also, give the full form of CRAR.

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    1. Ishu

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      Ishu Innovative
      2020-12-03T18:29:24+05:30Added an answer on December 3, 2020 at 6:29 pm

      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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