Capital ratio

Banking - capital adequacy.

1.

The ratio of total capital to risk weighted assets (RWAs).

2.

More generally, any ratio including a measure of a financial institution's capital, used to evaluate the adequacy of the quality or total quantity of capital.

For example, the CET1 ratio.

See also

• Capital adequacy
• CET1 ratio
• Common Equity Tier 1 (CET1)
• Equity
• Risk Weighted Assets
• Tier 1
• Tier 2
• Total capital ratio